Are there limitations to eligible dependent care expenses?
Yes. Listed below are some of the limitations for eligible dependent care expenses. 1. Expenses must be necessary for you to continue working. If you are married, your spouse must also be employed or attend school full time. 2. Dependents requiring care must be under the age of 13 or physically or mentally incapable of self care. 3. Services must be performed by someone other than your dependent, your spouse, or your child under age 19. 4. If your dependent is cared for by a day care center, the center must care for seven or more individuals and comply with state laws and regulations. 5. Expenses may not exceed the lesser of your earned income or that of your spouse. The maximum amount which can be reimbursed on a pre-tax basis is $5,000. If you are married filing separately, the maximum is $2,500.
