Allowable Dependent Care Expenses in a Cafeteria Plan
To be reimbursable, the expenses you incur must enable you and your spouse, if married, to be employed or to look for employment. If this requirement fulfilled, then the following expenses are eligible for dependent care reimbursement. For a more complete list of expenses, please contact the IRS Forms Distribution Center at (800) 829-3676 and request Publication 503: Child and Dependent Care Expenses or refer to IRS publication 503 at http://www.irs.gov/pub/irs-pdf/p503.pdf.

• Ordinary and usual household services that are necessary to run your home and include the care of a qualifying dependent. These services include a housekeeper, maid or cook.
• The cost of care provided outside your home if the care is for a qualifying person under age 13, or any other qualifying person who regularly spends at least eight hours each day in your household. This includes: care provided by a dependent care center if the center complies with all state and local regulations governing the center as well as day care costs incurred while your qualifying dependent is in a day camp.
• When your child is below the first grade, the cost associated with the care of your child, if you can separate the cost of schooling from the cost of care, is reimbursable. If the cost of schooling is incident to and cannot be separated from the cost of care, then the total cost is eligible for reimbursement. Kindergarten is not reimbursable.
• When your child is in the first grade or higher, but under age 13, the cost of care must be separated from the cost of schooling to be eligible for reimbursement.
• The taxes you pay on wages for qualifying dependent care services.
• The amounts you pay for dependent care services to relatives who are not your dependents.

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Ineligible Dependent Care Expenses in a Cafeteria Plan
The following expenses are not eligible for reimbursement under an IRC Sec. 125 or 129 plan. For a more complete list of expenses, please contact the IRS Forms Distribution Center at (800) 829-3676 and request Publication 503: Child and Dependent Care Expenses or refer to IRS publication 503 at http://www.irs.gov/pub/irs-pdf/p503.pdf.

• Expenses for kindergarten, if the expenses are primarily educational in nature, regardless of half- or full-day, private or public school, state mandated or voluntary.
• The cost of schooling for your child(ren) enrolled in kindergarten or higher.
• The cost incurred to send your child(ren) to overnight camp.
• The cost of transporting a qualifying person to and from a care location or from a care location to school.
• Dependent care costs you pay while you are off from work because of illness or injury.
• The amounts you pay to a dependent that you or your spouse, if you are married, can claim as an exemption.
• The amounts you pay to your child who is under age 19 at the end of the year, even if he/she is not a dependent.
• Daycare for a child aged 13 or older.
• Nursing Homes.