Dependent Care Flexible Spending Account: Who Qualifies and What You Get
Learn how to use tax-free funds from a Dependent Care FSA to pay for childcare and care for dependents while you work.
A Dependent Care Flexible Spending Account (DCFSA) is a way to set aside money from your paycheck before taxes are taken out to help pay for the care of a dependent.
Who it's for
This benefit is available to employees whose employers choose to offer this specific type of account as part of their benefits package.
What you get
You get access to tax-free funds that can be used to pay for the care of a qualifying dependent. This help is intended to allow you to remain employed or look for work.
What it costs you
The money is funded through pre-tax deductions taken directly from your payroll. It is important to note that this is a "use it or lose it" account, meaning any funds you do not spend by the end of the year may be forfeited.
The catch to know
The care you pay for must be for a qualifying person. Generally, this includes a child under the age of 13 or a disabled spouse or parent.
How to apply
- Check with your employer's HR department to see if they offer this benefit.
- Follow your company's enrollment process to decide how much money you want to contribute.
- Keep all receipts and records of the care expenses you pay for throughout the year.