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What Is a Dependent Care FSA?

A Dependent Care Flexible Spending Account (DCFSA) — sometimes called a Dependent Care Assistance Program, or DCAP — is a pre-tax employee benefit offered through an employer's Section 125 “cafeteria” plan. It lets you set aside part of your paycheck, before income and payroll taxes are withheld, to pay for care of a qualifying child or adult dependent so you (and your spouse, if married) can work or look for work.

Who qualifies for a Dependent Care FSA

To use a Dependent Care FSA, generally:

  • You (and your spouse, if married) must have earned income during the year.
  • The care must be for a qualifying person — typically a child under age 13 whom you claim as a dependent, or a spouse or other dependent who is physically or mentally incapable of self-care and lives with you more than half the year.
  • The care must enable you (and your spouse, if married) to work or actively look for work — care used purely for personal reasons generally doesn't qualify.
  • Your employer must offer a Dependent Care FSA as part of its benefits package — it's not available to the self-employed the same way (though a similar tax credit may apply).

How the tax savings work

Money you contribute is deducted from your paycheck before federal income tax, most state income tax, and FICA (Social Security and Medicare) tax are calculated. For 2026, you can contribute up to $7,500 per household. Because the money is never taxed, the savings can be worth several hundred to well over a thousand dollars a year depending on your tax bracket — see the savings calculator for a personalized estimate.

Dependent Care FSA vs. Health FSA

They're easy to confuse, but they cover completely different expenses:

  • Health FSA — covers your own eligible medical, dental, and vision expenses.
  • Dependent Care FSA — covers care expenses (like daycare or camp) that allow you to work. It cannot be used for medical costs.

Many employers offer both as separate elections, each with its own contribution limit and its own “use-it-or-lose-it” rules.

Dependent Care FSA vs. the Child and Dependent Care Tax Credit

The federal government also offers a Child and Dependent Care Tax Credit on your annual tax return. You generally cannot claim the credit on the same expenses you paid through a Dependent Care FSA — for most moderate-to-higher earners, the FSA's pre-tax payroll savings are worth more than the credit, but the math can go the other way for lower incomes. See IRS Topic No. 602 for how the credit works.