Thank you.
It is interesting to know that it depends on FSA Administrator. Isn't there a Federal tax guideline which they need to specifically follow around this?
I did talked to them earlier twice and both times they were confused and not sure about whether I can claim the full amount or need to pro-rate. They said it can only be determined once I submit for reimbursement. I have just paid the agency fee so I can do the submission and see what happens. I think they wouldn't pay before but at least approve or deny the request on submission.
I did not had any other childcare expense in 2023 so I don't have any other place where I can use it. The concern I have here is that I still have time to adjustment my DCFSA contribution depending on whether 2023 can cover whole agency fee or just prorated because my last paycheck still need to make the contribution and I can do a change of care needs event and adjust DCFSA contribution going forward to stop over contribution.
Worst case, which I am thinking is lets say I go ahead and contribute 5k. I can only cover prorated till March 15 which according my calculation will be 3600. I will have 1400 reminder which will get lost if I don't use it. What are some ways in which I can use this amount? Au Pairs work hours and duties are federally defined they can only do childcare works and only work 45 hours in a week. I am wondering if I can hire a babysitter for weekend and use DCFSA for that or will it not be covered since weekend is not working days?
Thanks.
