Adult Day Care Cost Savings

If your senior adult requires day care, and lives at least eight hours a day in your home, and the adult day care enables you and your spouse to be employed, then you can cut adult day care cost using a Daycare Flexible Spending Account.

A Flexible Spending Account enables you to pay for senior adult daycare centers, services, and programs using pre-tax dollars. You can channel up to $5,000 of your senior adult daycare cost through this account every year, and will see a variety of savings.   It is not uncommon to see $1,500 of tax cost savings every year.

Here are a few simple rules you must know:

* The adult daycare services may be provided in your home or another location, but not by someone who is your minor child or dependent for income tax purposes. * Qualifying adult daycare centers must comply with state and local adult daycare regulations.
* The adult daycare programs must be for the physical care of the senior, not for healthcare, education, meals, etc.
* Qualifying adult daycare costs include the care of a spouse, parent, or dependent who is incapable of self-care and regularly spends at least eight hours per day in your home.

If your employer does not offer a Daycare Flexible Spending account, we make it easy to ask your employer.