Dependent Care Flexible Spending Account

BWH® Hotels offers a Dependent Care FSA administered by Discovery Benefits, so you can save money on your taxes when you have daycare expenses for your child or disabled adult family member who lives with you and is your tax dependent so you can continue to work. With an FSA, you don’t pay federal, state or FICA taxes on the money you contribute. This means you may save 15 to 46 cents on every dollar you spend on dependent care (your savings depends on your tax bracket).

How the Dependent Care FSA Works

 

Enrolling in a Dependent Care Flexible Spending Account (FSA) is simple and can help you save on everyday care expenses. Start by estimating what you expect to spend in the coming year for eligible services—such as child care, nursery school, summer day camp, or care for an elderly or incapacitated adult dependent you claim on your tax return.

During Open Enrollment, elect to participate in the Dependent Care FSA and decide how much to contribute based on your estimated expenses. You can set aside up to $7,500 of your before-tax pay each year (or $3,750 per spouse if you file separately).

Once enrolled, you can use the funds in your Dependent Care FSA to pay for eligible expenses throughout the plan year—helping you manage care costs while you and your spouse (if applicable) work or attend school full-time.

Dependent Care FSA Expenses

 

You can use your FSA to pay for care for:

  • Care for a child age 12 or younger so that you and your spouse can work, look for work, or go to school full-time.
  • Child care provided in your home
  • After-school care for a child age 12 or younger
  • Nursery school or a day-care center
  • Summer day camp
  • The part of private school fees that are for the care of your dependent
  • Care for a disabled spouse, elderly parent, or dependent of any age who:
    • Can’t care for himself/herself
    • Lives in your home at least eight hours a day
    • Is listed as your dependent on your income tax return

Important Things to Know

 

You must re-enroll in the Dependent Care FSA each year during Open Enrollment and elect the amount you wish to contribute for the new plan year. Elections do not carry over, so if you want to continue participating, you must make a new election annually.

You may enroll as a new employee or during Best Western’s Open Enrollment period. After enrollment, changes to your contribution amount are only allowed if you experience a Qualified Life Event or there is a change in your dependent care costs.

Use It or Lose It!

Please carefully think about the amount you wish to contribute to the Dependent Care FSA. The IRS requires that services must be performed during the plan year. Any money left in your account after the claim deadline is forfeited and cannot be rolled over to the next plan year. For more information, visit the IRS website.