Attention Employers: See the latest COVID relief, including COBRA subsidy and DCFSA changes here →
  • LinkedIn
  • Twitter
  • Facebook

Support & FAQ

Dependent Care Flexible Spending Account

  • What is a Dependent Care FSA?
    A Dependent Care Flexible Spending Account, or “FSA,” is a pre-tax benefit account used to pay for dependent care services while you are at work. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck. Under this type of account, a “dependent” is a child under 13 years of age (until the day of their 13th birthday) and adult dependents who can't take care of themselves. Please keep in mind that they must live with you and be claimed as dependents on your tax return. Please review the eligible expense list [list] to see what's covered under your Dependent Care FSA.

    Optional provision: The Consolidated Appropriations Act (CAA) 2021, temporarily allows for an eligible employee to be reimbursed expenses for dependents through age 13 (i.e., dependents who have not yet turned 14) for the 2020 plan year. To qualify for this relief, you must have been enrolled on or before January 31, 2020 and you must have unused amounts from the 2020 plan year. In addition, you must have one or more dependents who attained the age of 13 during the 2020 plan year. You may also take advantage of this relief for the next plan year if unused grace period amounts from the 2020 plan year or other funds carried over into the 2021 plan year. Please refer to your plan documents to determine if this option is available under your plan.
    Was this answer helpful to you? YesNo