Dependent Day Care FSA
Last Updated December 7, 2023
Flexible Spending Accounts (02:33)
The Dependent Day Care Flexible Spending Account (FSA) allows you to pay for eligible out-of-pocket dependent day care expenses with before-tax dollars. You may contribute $200 to $5,000 (depending on your federal income tax filing status) to reimburse yourself for expenses such as day care for your child, elderly parent or disabled spouse. See IRS publication 503 for the full list of eligible expenses.
Your contributions will be deducted from your paycheck in equal installments on a before-tax basis during the Plan year. You and your spouse must both work or be a full-time student for expenses to be eligible. You cannot pay an older dependent child as your care provider. NOTE: A specific expense can be reimbursed to you from an FSA or claimed by you as a federal tax deduction, but not both.
You Must Enroll
You must enroll each year during Annual Enrollment to begin or continue participating in the FSA programs. Your contributions will be deducted from your paycheck in equal installments on a before-tax basis during the Plan year. Once you make an election for the year, you cannot change it during the year unless you experience a qualifying status change.
Use it or Lose It!
Plan carefully! Per IRS rules, you forfeit any money remaining in your FSAs at the end of the Plan year. You have until March 31 of the following year to submit claims for services incurred during the current Plan year. Use the “Ask Emma” tool to calculate expenses and help you determine the amount to contribute to an FSA.