How would death of a dependent mid-year effect Dependent Care Election

[Guest Turtle]

We have an employee whose dependent died early in the year. We of course stopped his Dependent Care deduction, but the remaining concerned is that more has been deducted than they will have receipts for. Can the full amount, contributed to the plan prior to cancellation of the deduction, be refunded even without receipts totalling the contributed amount?

[Lisa Hand]

NO. It would violate the "Use it or lose it" rule. They should closely review their records to make sure they haven't missed any eligible expense.