Dependent care expenses.
Medical care expenses are defined, as those expenses not reimbursed under a health or dental insurance policy. The employer may choose to place a maximum on the amount an employee can withhold for this purpose.
Dependent care expenses are defined as expenses for care of a qualified individual (a child under 13 or a disabled dependent or spouse), so the employee and their spouse are enabled to work. An employee is able to set aside up to $5,000 annually for this purpose.
