Can someone explain dependant care account to me?

Runnergirl2242 · November 2011

Both my job and my husbands job offers the dependant care accounts. I am sure that bc this is an IRS thing its probably offered everywhere. I do not understand how it works. Can anyone explain it to me? Also, both my husbands job and mine offer it maxing at 5000. Does that mean that both of us can use it or is it just one 5000 account per family? How do you get reimbursed from the account at your job?

Thanks!!!

kaustin2010 · November 2011

We were going to do this but we missed the deadline for signing up after DD's birth so now we have to wait until open enrollment. Boo. But yes, you can each do it. The max is $5,000 per FAMILY, so if you're both doing it you'd each want to do $2,500. As for reimbursement, I'm not sure how it works. My sister-in-law does it and says she gets the money deposited in her checking account. I'm sure there's come form you have to have the daycare fill out. We asked about it when we signed DD up for daycare and they said they do it all the time, they just need the daycare providers tax id number. I'm sure your HR people can either answer the question or tell you who to call.

renogaw · November 2011

The way my account works, I get daycare to give me an invoice that shows how much I paid them. I scan it into my computer and upload it to the company that manages the accounts. I have the option of getting a physical check or direct deposit. I'm pretty sure the $5000 is per family (not per parent or even, unfortunately, per child).