Dependent Care Flexible Spending Account
A Dependent Care FSA allows you to contribute annually on a pre-tax basis up to $5000 (or $2500 if you are married and file separate tax returns). You can use your FSA to reimburse yourself for:
- Eligible day care expenses that enable you to work or look for work on a full-time basis.
- Care of a dependent that lives with you, who is under the age of 13, or disabled and any age. You must claim this person as a dependent on your income tax return.
You can’t be reimbursed for care provided by your spouse, your child under age 19, or someone you claim as a dependent.
You should consult a tax advisor to determine if the childcare tax credit available on your federal income tax return is more beneficial to you than a Dependent Care FSA.