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A dependent care versatile spending account (FSA) is an employer-sponsored account that enables staff to put aside pre-tax {dollars} to pay for certified dependent care bills, similar to childcare, eldercare, or summer time 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 save cash on childcare and different dependent care bills. The cash that’s contributed to the account will not be topic to federal revenue 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 amount of cash 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, resembling childcare, eldercare, and summer time camp. The restrict for 2025 is $5,000, which is identical because the restrict for 2024.

Dependent care FSAs provide a number of advantages. First, they may also help workers get monetary savings on childcare and different dependent care bills. Second, they’ll cut back workers’ taxable earnings, which may result in a decrease tax invoice. Third, they’ll make it simpler for workers to steadiness their work and household tasks.

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