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This program is for registered UCLA students holding at least a 25% ASE and/or GSR appointment during the academic year and who have (a) qualified dependent(s). An ASE/GSR who meets the standard eligibility requirements will be offered a reimbursement of up to $1,100 per quarter or $1,650 per semester for childcare costs during the academic year. Additionally, an ASE/GSR who meets the standard eligibility criteria for a summer session appointment can be reimbursed up to $1,100 for eligible expenses incurred during the summer. The $1,100 limit applies regardless of the number of summer terms an ASE/GSR may work in a calendar year. To be eligible for reimbursement during the summer term, the ASE/GSR must also be a registered student in the regular academic terms preceding and following the summer session appointment.
Qualified dependent: A qualified dependent(s) shall include children, in the custody of the ASE/GSR, who are age 12 or under on July 1st, i.e., claimed as a dependent on the ASE/GSR tax return.
Allowable receipts: If care is provided in a day-care center, the center must charge a fee. If the center cares for six or more dependents who are not residents, it must comply with all state and local licensing laws and applicable regulations. Expenses incurred before the beginning of or after the end of a term are not eligible for reimbursement. Child care provided by the spouse, a child of the ASE/GSR under age 19, or someone else the ASE/GSR claims as a dependent for tax purposes is not reimbursable.
Note: Two GSR/ASE employees may not each claim the credit for the same provider care for an eligible child unless the provider care exceeded the term dollar limit of $1,100 per quarter or $1,650 per semester. The second GSR/ASE employee may claim the additional expense reimbursement by submitting a separate claim.
1) What is the reimbursement amount?
$1,100/quarter OR $1,650/semester.
2) What is a “qualified dependent?”
A qualified dependent(s) shall include children, in the custody of the ASE/GSR, who are age 12 or under on July 1st, i.e., claimed as a dependent on the ASE/GSR tax return.
3) How is “childcare provider” defined?
The child care provider must be licensed with a valid tax ID or Social Security number. If the center cares for six or more dependents who are not residents, it must comply with all state and local licensing laws and applicable regulations. Child care provided by the spouse, a child of the ASE under 19, a friend or relative living in the same household as the Academic Student Employee or someone else the ASE claims as a dependent for tax purposes is not reimbursable.
4) How will the reimbursement be taxed?
The reimbursement will be subject to Federal tax withholding at 25% and State tax withholding at 6%. Defined Contribution Plan (DCP) and Medicare will be deducted if applicable. Reference: Federal Regulations 31.3403(g)-1.
5) How will I receive my reimbursement?
The reimbursement will be processed through Payroll and will be delivered in the same manner that an ASE/GSR usually receives payment, either direct deposit or a paper check. If the reimbursement is processed more than 30 days after a GSR no longer has an active appointment then the reimbursement will probably be by paper check.
6) Will the child care reimbursement affect my eligibility for financial aid?
It is possible that the child care reimbursement might impact eligibility for Financial Aid. It is the responsibility of the ASE/GSR to inform the appropriate agencies and offices of the receipt of such child care reimbursement.
7) Why is the child care reimbursement taxable?
The reimbursements received by eligible ASE/GSR employees under this program are treated by the IRS as additional wage income.
8) Can I claim the child care credit on my tax form?
Potentially yes. Even though the reimbursement received under the ASE/GSR Child Care Program represents taxable wages to the employees, the amounts paid by the ASE/GSR employees for child care services may be eligible for the ‘dependent care services’ tax credit set forth in Section 21 of the Internal Revenue Code. Unlike tax deductions that merely serve to reduce the amount of taxable income against which the tax percentage is applied, a tax credit is a dollar-for-dollar reduction in the taxpayer’s tax liability and is therefore significantly more valuable than a tax deduction.
The amount of the dependent care services tax credit that can be claimed is determined by multiplying the amount paid for the child care services during the year by a sliding scale percentage depending on the individual’s adjusted gross income as illustrated in the following chart:
|Adjusted Gross Income|
|Over||But Not Over||Applicable Percentage|
Please note, however, that the amount of the credit cannot exceed $3,000 for one child or $6,000 for two or more children in any single tax year. The dependent care services tax credit is subject to a number of different requirements that are explained in IRS Publication 503, which can be found on the IRS website.
You should consult with your tax advisor in determining whether you are eligible to claim this credit.
9) I am a fellowship recipient, do I qualify for the Childcare Reimbursement Program?
No. The childcare reimbursement is only available for students holding at least 25% time employment as a GSR/ASE.