U.S. Reps. Brad Wenstrup (R-OH), Mike Kelly (R-PA), and Darin LaHood (R-IL), members of the U.S. House Ways and Means Committee, recently requested that the U.S. Treasury Department allow Americans to use their Dependent Care Flexible Spending Accounts (DCFSAs) for online education and childcare services during the COVID-19 pandemic.
“While I believe science shows that schools can safely return to in-person learning, there are instances for some families where it is not possible,” said Rep. Wenstrup, who noted that currently families with Dependent Care FSAs are unable to use DCFSAs for online schooling or childcare.
“After hearing from a constituent with an online schooling issue, I was proud to lead this effort to expand DCFSA eligibility,” Rep. Wenstrup added. “I’m grateful to them for bringing this issue to my attention and am proud to work on behalf of them and other individuals and families facing similar difficulties.”
Rep. Wenstrup joined Reps. Kelly and LaHood in sending an Oct. 16 letter to U.S. Treasury Secretary Steven Mnuchin and Internal Revenue Service Chief Counsel Michael Desmond requesting that they provide temporary flexibility for DCFSAs for families utilizing virtual dependent care services due to the pandemic.
Many employers offer DCFSAs to their employees and their families, allowing employees to contribute up to $5,000 pre-tax dollars per year to cover eligible services, such as child or adult daycare, preschool, summer day camp, and before- or after-school programs, according to their letter.
“As Americans begin to return to normal, further flexibility is needed,” the lawmakers wrote. “While childcare providers have adapted to continue to provide services for working families, the regulations guiding DCFSA tax-advantaged accounts have not.”
They noted that families need assurance that their children may access education and childcare services. “As you continue to give Americans the needed tools to restore their lives during the COVID-19 public health emergency, we ask that you issue guidance to allow families to temporarily use their DCFSA dollars on virtual dependent care services for the duration” of the pandemic, they wrote.