Save money on caregiving expenses for children and senior family members, using before-tax dollars straight from your paycheck.
The amount you elect to contribute is split evenly across pay periods for the year and deducted from each paycheck before taxes. You can enroll as a new hire, during Open Enrollment, and after a qualifying life event. You must enroll each year to participate.
You can contribute up to $7,500 per year if you are single or file taxes jointly with your spouse, or up to $3,750 if you are married but filing separately.
You can use it for:
For details, see IRS Publication 503.
This account cannot be used for a dependent's health care expenses. Any money left in your account at the end of the year is forfeited, so choose your contribution amount carefully. You cannot use this account to pay care providers who don’t have a federal tax ID, such as a state-registered domestic partner or grandparent. If you use the Dependent Care FSA for childcare expenses, you cannot use those same expenses to claim the child tax credit. Expenses must be necessary because you (and your spouse, if married) work, are looking for work, or attend school full time.
Is the Dependent Care FSA right for you? If you expect to need child care or elder care this year, it’s worth considering. You’ll pay less because you’re using tax-free money.
