Elder Care & Adult Daycare
Employees will save 25% to 40% on the cost of daycare for elderly and/or disabled adult dependents.
Employees set aside pre-tax payroll funds into this account to pay for the daycare expenses of an elderly dependent who cannot physically or mentally care for him or her self.
Qualified expenses include housekeeper and nurse’s fees for services provided inside the home. Adult daycare expenses, as well as incidental household expenses, are covered.
Daycare expenses for services outside the home also qualify, if they are for the care of an elderly dependent who regularly spends at least eight hours per day in your home. To qualify, expenses paid for daycare must allow an Employee or the Employee’s spouse (if they are married) to work or look for employment.
The IRS also offers Employees the option of saving for daycare with a credit taken on Form 1040.