Elderly Daycare through DCAP Account

[Guest loricraun]

Here’s a topic I haven’t seen addressed yet.

I have a client with a 125 Dependent Care Assistance Plan. This employer has an employee whose elderly mother lives with the family. She has Alzheimer's and cannot care for herself. The employee is the legal guardian for his mother and I believe claims her on his taxes.

Question: Can this employee claim cost for adult day-care for his dependent elderly mother through his employer’s Dependent Care plan?

Is there a specific section of 125 code that says he can or cannot do this? Let me know your opinion.

[SLuskin]

Yes, employment related daycare can also apply to a spouse or other dependent who is incapable of self care. It's the same section 129 of the code as the child care.