Day care provider need to be licensed for Dependent fsa?

Yes, daycare provider need to be licensed for Dependent Flexible Spending Account (FSA) reimbursements. The IRS requires that daycare providers

must be licensed , registered , or approved by the state in which they provide services. This is because the IRS considers reimbursements for daycare expenses as a tax-advantaged benefit provided by the employee's employer, and this benefit is subject to various rules and regulations.

By requiring daycare providers to be licensed, registered , or approved , the IRS ensures that these providers are meeting certain standards and regulations and that reimbursement are used for qualified daycare expenses.