A dependent care flexible spending account (FSA) is an employer-sponsored account that allows employees to set aside pre-tax dollars to pay for qualified dependent care expenses, such as childcare, eldercare, or summer camp. The maximum amount that can be contributed to a dependent care FSA in 2023 is $5,000 for single taxpayers and $10,500 for married couples filing jointly.
Dependent care FSAs can be a great way to save money on childcare and other dependent care expenses. The money that is contributed to the account is not subject to federal income tax, and it can be used to pay for a variety of expenses, including:
