 Click
here to file a claim for for Dependent Care Reimbursement Account expenses.
Participating employees may contribute up to $5,000 per year to the Dependent
Care Reimbursement Account. Your contributions will be deducted pre-tax from
your pay.
If you are divorced, legally separated, or have lived apart from your spouse during
the last six months, the parent who is able to claim your child as a dependent on his
or her tax return is the custodial parent (the parent who has custody of the child for the
greater portion of the calendar year). This parent can be reimbursed for the child's
day care expenses through the Dependent Care Reimbursement Account.
If you use a Duke-contracted facility, such as the Duke Children's Campus, and
receive a subsidy, the amount that you can contribute to the Dependent Care
Reimbursement Account is reduced dollar-for-dollar. Call Duke's Open
Enrollment Service Center at 1-877-371-9963 for more information.
Dependent Care Reimbursement Account
By setting aside pre-tax money from your pay into the Dependent Care Reimbursement Account,
you may later repay yourself for eligible expenses incurred in calendar year 2008.
Because your contributions are deducted from your pay before federal income,
state income, and Social Security taxes have been withheld, you save on taxes.
Some Special Rules for Your Dependent Care Reimbursement Account
There are some special federal tax guidelines you need to keep in mind if you decide
to contribute to a Dependent Care Reimbursement Account.
- Your total contribution cannot be greater than your earned income or your spouse's
earned income, whichever is lower. This means if your spouse's salary is $4,000 and
your salary is $30,000, the most you can contribute is $4,000. In addition, your
deposit to the Duke reimbursement accounts may not exceed half of your gross
pay each pay period.
- If your spouse has no earned income, you are not eligible for a Dependent Care
Reimbursement Account. However, there are special rules if your spouse is a
full-time student or is disabled. Contact Wage Works at 1-877-924-3967 for
more information.
- If both you and your spouse have Dependent Care Reimbursement Accounts, your
total combined contribution limit is $5,000. Likewise, if you and your spouse file
separate federal income tax returns, your individual Dependent Care
Reimbursement Account limit is $2,500. If you are single with an eligible
dependent, however, you can contribute up to the full $5,000.
- You must report the name, Social Security number or taxpayer
identification number of each dependent care provider, the provider
signature or receipt, and service dates when you submit a Dependent Care
Reimbursement Account claim.
- If you participate in the Dependent Care Reimbursement Account, you
must complete IRS Form 2241, "Child and Dependent Care
Expenses," along with your IRS Form 1040, "U.S. Income Tax
Return."
Please remember:
Estimate your expenses carefully when deciding how much you want to
contribute for 2008. You may submit your eligible claims for services received during
the plan year (Jan. 1 - Dec. 31, 2008) until April 15, 2009. Any money left in your
account after April 15, 2009, will be
forfeited, according to federal tax law. For
help in estimating your expenses, refer to
the Health Care and Dependent Care
Reimbursement Account Worksheets on
pages 32 and 33 in this enrollment package
or WageWorks' helpful online tools for the
Health Care Reimbursement Account or for
the Dependent Care Reimbursement
Account.
Please see When Can I Make Changes? for information on
mid-year status changes and how they
may affect your eligibility to participate
in the plans and receive reimbursement
for expenses.
Special Circumstances
Divorced or separated parents: Check with your legal or tax advisor to see if special rules apply to
you that would enable your child to be claimed by the non-custodial parent or by both parents.
Tie-breaker: If two or more people want to claim the same child as their qualifying child, the person
who has the right to is: (1) the child's parent - if one person is the child's parent and the other is
not, (2) the parent with whom the child lives with longest in the year - if both people are the child's
parents, (3) the parent with the higher adjusted gross income - if both people are the child's parents
and the child lives equally with both during the year, or (4) the person with the higher adjusted gross
income - if both people are not the child's parents.
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