DCFSA Eligible Expenses: What You Can (and Can't) Pay For
Complete guide per IRS Publication 503. If the care enables you to work, it probably qualifies.
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The IRS rule is simple: the care must be for a qualifying person (under 13 or incapable of self-care) AND must enable you (and your spouse) to work or look for work.
Babysitters, Nannies & Au Pairs
- Babysitters, regular or occasional, during work hours
- Nannies, full-time or part-time
- Au pairs (the portion paid for childcare services)
Documentation requirement: You must have your caregiver's name, address, and SSN or EIN to report on IRS Form 2441. Without this information, your DCFSA reimbursement claim may be denied.
Tip: SitterSync generates IRS-compliant receipts for DCFSA and the Child and Dependent Care Tax Credit, 1099s for your providers, and a Form 2441 summary at year-end for tax prep. No chasing down paperwork.
Daycare & Childcare Centers
- Licensed daycare centers
- In-home daycare
- Employer-sponsored childcare
Most daycare centers already provide the documentation you need (provider name, EIN, dates of service). Keep your monthly or weekly statements as backup.
Preschool & Pre-K Programs
- Preschool tuition qualifies in full
- Pre-K programs
Important: Kindergarten tuition and above does NOT qualify. The IRS draws the line between custodial care (preschool) and education (K-12). Only care below kindergarten is eligible.
Before & After School Programs
- Before-school care
- After-school programs
- Early dismissal care
Key distinction: The care program itself qualifies; academic tutoring does not. If a program mixes care with instruction, only the care portion is eligible. In practice, most before/after-school programs are treated entirely as custodial care.
Summer Day Camps
- Day camps qualify
- Sports camps, art camps, STEM camps, all of which qualify if they provide daytime care
Important: Overnight camps do NOT qualify, even if the camp serves the same childcare purpose. The IRS specifically excludes overnight camp expenses from DCFSA eligibility.
School Break & Holiday Care
- Spring break programs
- Winter break care
- Teacher workday coverage
These are some of the most overlooked DCFSA-eligible expenses. If you pay someone to watch your kids on school holidays so you can work, that's a qualifying expense.
Elder & Dependent Adult Care
- Adult day care centers
- In-home care during work hours
Qualifying requirement: The person must live with you and be physically or mentally incapable of self-care. The care must enable you to work. Medical care (nursing, health treatments) is not a DCFSA expense. That falls under a Health FSA or HSA.
Paying Family Members with DCFSA
- You can pay a grandparent, aunt, uncle, or older sibling (age 19+)
- Cannot be your spouse
- Cannot be the child's other parent
- Cannot be your dependent
- Cannot be your child under age 19
Tax note: The family member you pay must report the payment as income on their tax return. You'll also need their SSN for Form 2441, just like any other caregiver.
What Does NOT Qualify for DCFSA
- Overnight camps
- Kindergarten tuition and above (K-12)
- Food, clothing, and entertainment
- Medical or health care
- Tutoring or academic instruction
- Care while you are not working or looking for work
- Payments to your spouse or the child's other parent
- Payments to your own child under age 19
Who Is a “Qualifying Person”?
Your DCFSA can only cover care for people who meet the IRS definition of a qualifying person:
- Your dependent child under age 13 who lives with you
- Your spouse who is physically or mentally incapable of self-care and lives with you
- Any dependent who is physically or mentally incapable of self-care, lives with you for more than half the year, and spends at least 8 hours per day in your home
In all cases, the care must enable you (and your spouse, if married) to work or actively look for work. If one spouse does not work and is not looking for work, DCFSA eligibility may be limited or eliminated. See IRS Publication 503 for the full-time student and disabled spouse exceptions.
Documentation & Recordkeeping Requirements
To claim DCFSA reimbursement and file your taxes correctly, you need the following for each care provider:
- Provider's full legal name
- Provider's address
- Provider's taxpayer ID number (SSN or EIN)
- Dates of service
- Amount paid
You must report this information on IRS Form 2441 (Child and Dependent Care Expenses), which you file with your federal tax return. Even though DCFSA contributions are pre-tax, Form 2441 is still required.
If a provider refuses to give you their SSN or EIN, you can still claim the expense, but you must demonstrate due diligence in attempting to obtain it. Record the date and method of your request.
Frequently Asked Questions
Can I use my DCFSA to pay a babysitter?
Yes. Babysitters, both regular and occasional, are DCFSA eligible expenses as long as the care is provided so you (and your spouse) can work or look for work. You will need the babysitter's name, address, and Social Security number (or EIN) to report on IRS Form 2441. Tools like SitterSync collect this information and generate DCFSA-ready receipts automatically.
Can I use DCFSA for summer camp?
Summer day camps qualify as DCFSA eligible expenses. This includes sports camps, art camps, STEM camps, and general recreation day camps, as long as they provide daytime care that allows you to work. However, overnight camps do NOT qualify, even if they serve the same childcare purpose. The IRS specifically excludes overnight camp expenses.
Does DCFSA cover preschool?
Yes. Preschool tuition and pre-K programs are fully DCFSA eligible. The IRS considers preschool to be custodial care, not education. However, once your child enters kindergarten or above, tuition no longer qualifies. Only before-school and after-school care programs are eligible at that point.
Can I pay a family member with DCFSA?
Yes, with restrictions. You can pay a relative such as a grandparent, aunt, uncle, or older sibling (age 19+) with DCFSA funds. However, you cannot pay your spouse, the child's other parent, or anyone you claim as a dependent. You also cannot pay your own child under age 19. The family member must report the payment as income on their tax return.
Can I use DCFSA for after-school programs?
Yes. Before-school care, after-school programs, and early-dismissal care are all DCFSA eligible expenses as long as they allow you to work. The care program itself qualifies, but academic tutoring or instruction does not. Most after-school programs at schools and community centers are considered custodial care and fully qualify.
Do I need my babysitter's Social Security number?
Yes. To claim DCFSA reimbursement and correctly file your taxes, you must report each care provider's name, address, and taxpayer identification number (SSN or EIN) on IRS Form 2441. If a provider refuses to give their SSN, you can still claim the expense, but you must show due diligence in attempting to obtain it. SitterSync helps by generating IRS-compliant receipts, 1099s for providers, and a Form 2441 summary at year-end for tax prep.
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See exactly how much a DCFSA saves your family: income tax, FICA, and state taxes.
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