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A dependent care versatile spending account (FSA) is an employer-sponsored account that permits staff to put aside pre-tax {dollars} to pay for certified dependent care bills, reminiscent of childcare, eldercare, or summer season camp. The utmost quantity that may be contributed to a dependent care FSA in 2023 is $5,000 for single taxpayers and $10,500 for married {couples} submitting collectively.

Dependent care FSAs could be a good way to economize on childcare and different dependent care bills. The cash that’s contributed to the account just isn’t topic to federal earnings tax, and it may be used to pay for a wide range of bills, together with:

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The 2025 dependent care FSA restrict is the utmost sum of money that may be contributed to a dependent care versatile spending account (FSA) in 2025. Dependent care FSAs are employer-sponsored accounts that enable workers to put aside pre-tax {dollars} to pay for eligible dependent care bills, corresponding to childcare, eldercare, and summer time camp. The restrict for 2025 is $5,000, which is identical because the restrict for 2024.

Dependent care FSAs supply a number of advantages. First, they may also help workers lower your expenses on childcare and different dependent care bills. Second, they will cut back workers’ taxable earnings, which may result in a decrease tax invoice. Third, they will make it simpler for workers to stability their work and household duties.

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