Can I participate in the DCAAccount if I use an au pair to care for my children?
Yes, you may use an au pair to provide dependent care services. But only the amounts paid to cover wages, taxes on those wages, and expenses incurred by the day care provider for lodging and food the au pair consumes in your home are eligible for reimbursement. Au pair agency fees and/or transportation fares are not considered expenses paid for the care of the dependent, and are therefore not eligible for reimbursement. Be sure you complete and file the appropriate tax forms with the Internal Revenue Service.
