Cafeteria Plan and DCAP Problem

[Kram BergGold]

My client's husband has Alzheimer's. He is in a day program 5 days a week. The working spouse signed up for a $2500 pre tax medical plan and a $5,000 DCAP. She submitted say Jan and Feb bills to the cafeteria plan and Aug-Nov for the DCAP. Both plans are administered by the same company. They got back to her and said she can't do this. The day care medical can be used for one or the other but not both. Can anyone provide a cite to prove to the company that you are allowed to use different bills from the same provider for a cafeteria plan and a DCAP?

[kathyc2]

My client's husband has Alzheimer's. He is in a day program 5 days a week. The working spouse signed up for a $2500 pre tax medical plan and a $5,000 DCAP. She submitted say Jan and Feb bills to the cafeteria plan and Aug-Nov for the DCAP. Both plans are administered by the same company. They got back to her and said she can't do this. The day care medical can be used for one or the other but not both. Can anyone provide a cite to prove to the company that you are allowed to use different bills from the same provider for a cafeteria plan and a DCAP?

From Pub 503:
Medical expenses. Some expenses for the care of qualifying
persons who aren't able to care for themselves may
qualify as work-related expenses and also as medical expenses.
You can use them either way, but you can't use
the same expenses to claim both a credit and a medical
expense deduction

[Kram BergGold]

Kathyc2

Thanks, I interpret what you wrote as you can't submit the same bills for February for each. Not as the company interpreted it to mean any bills from the same company can't be used for both. I will look more closely at Pub 503.