Guidance on Dependent Care Accounts Sent

The Office of Personnel Management has sent agencies guidance on how the dependent care accounts will relate to the child care subsidy programs available to some lower-income federal employees. The combined amount for both such subsidies and for dependent care accounts cannot exceed $5,000 annually, meaning amounts above that cap are taxable as ordinary income and agencies capable of tracking both must make the appropriate deductions, the guidance said. For agencies not able to track both, the employee will have to pay the taxes when filing a return for that year, OPM said.