Dependent Care FSA

The plain answer

A dependent care flexible spending account lets you set aside pretax pay for eligible care that allows you and, if married, your spouse to work or look for work. Common examples include day care, preschool, before-school and after-school care, and adult day care for a qualifying dependent.

For 2026, the contribution limit in the site’s data is $7,500. If you are married and file separately, the limit is $3,750.

This figure is not yet confirmed against IRS guidance because the current source is not marked as primary. Check your employer’s plan materials and current IRS guidance before making an election.

How it actually works

You choose an annual contribution during enrollment. Your employer takes that amount from your pay before applicable taxes and puts it in the account. You then submit eligible expenses for reimbursement.

Unlike a health FSA, a dependent care FSA generally reimburses only up to the amount already available in the account. Eligibility also depends on the person receiving care, the type of care, and whether the expense enables you to work or look for work.

What this means for you

Estimate only the care expenses you expect to pay during the plan year. Compare the tax benefit of the FSA with the child and dependent care credit, since the same expense cannot support both benefits.

Review your plan’s eligible-expense rules, claim deadlines, and required documentation before choosing an amount.

Common mistakes

• Treating private school tuition as eligible dependent care
• Claiming the same expense for both the FSA and a tax credit
• Assuming the full annual election is available on the first day
• Forgetting that filing status can change the contribution limit
• Missing the plan’s claim submission deadline

Related pages

• What Is an FSA?
• Healthcare FSA
• How Much Should You Contribute?