How the Day Care FSA can help you

The Day Care FSA can help you reduce taxable income by setting aside money from each paycheck — before taxes — to pay for dependent care expenses. This benefit is only offered to benefit-eligible employees. The maximum annual amount is $5,000 per household ($2,500 each if you and your spouse file separate tax returns).

Here are some ways Day Care FSA can help you:

  • Setting aside a portion of your pay in the Day Care FSA reduces your annual taxable income and helps you pay for out-of-pocket dependent care expenses.
  • The Day Care FSA reimburses qualified dependent care expenses so you and your spouse (if married) can attend school or work, or look for work. If you have a stay-at-home spouse, you cannot enroll in the Day Care FSA.
  • Eligible expenses include babysitting, daycare, prekindergarten, and registration fees (see our eligible expenses list).

Qualifying dependents include:

  • A dependent under age 13 who qualifies as an Internal Revenue Service (IRS) dependent.
  • A spouse who is physically or mentally incapable of self-care.
  • Any other IRS-recognized dependent who is physically and/or mentally incapable of self-care.