The Dependent Care FSA allows you to set aside pre-tax money to pay for eligible dependent care expenses. You may set aside up to $5,000 (per household) to reimburse yourself for eligible expenses from July 1 – June 30. If married, both spouses must work to attend school full-time to use this benefit. You are responsible for paying taxes on the amount that exceeds the IRS calendar year limit of $5,000 during the tax process. You must re-elect Dependent Care FSA each year or it will automatically terminate. There is no carry over for the Dependent Care FSA Plan. Unused dependent care expenses will be forfeited at the end of the plan year.
Eligible expenses may include:
- Before- and after-school programs for children under age 13
- Nursery or pre-school tuition
- Summer day camps
- Au pairs
- Sick Child Center
- Looking for work; expenses incurred while parent seeks employment
Learn more by visiting the Flexible Spending Accounts page.