Dependent Care Reimbursement Account (DCRA)
If you have day care expenses for your children or elderly dependents, the DCRA may help you reduce your tax bill. It enables you to pay for certain dependent care expenses with tax-free dollars, which gives you tax savings. You decide how much you wish to contribute per year based on your estimated childcare or elder care expenses.
The maximum contribution per year is $5,000. Unlike the HCRA, the maximum contribution limit for the DCRA applies to your entire household. For example, if your spouse makes a DCRA election with his/her employer, you cannot make an election to this plan, even if your annual daycare expenses are $10,000 or more.
The Office of Faculty and Staff Benefits has compiled the following guide to assist you in identifying expenses which are eligible for reimbursement:
Frequently Encountered Health Care and Dependent Care Services
