Ithaca College
PAE-T2-4: Childcare

Through its benefits packages, employees may opt to create flexible spending account (FSA). FSAs are individual accounts set up for the employee and funded with excess College benefit credits and/or before-tax dollars. The tax-effective use of College benefit credits and before-tax dollars results in a lower costs to the employee for these expenses. Dependent care FSAs may only be used for care needed so that the employee and/or his/her spouse can work outside the home. Internal Revenue Code defines eligible costs as those incurred for the care of: ■ A dependent child under age 13 or a dependent child of any age who is physically or mentally incapable of self-care and who qualifies as the employee's tax dependent; or ■ Someone the employee claims as a tax dependent because of a physical or mental inability to care for himself or herself, such as an elderly parent or a disabled spouse.