*For illustrative purposes only. Savings calculations are based on federal tax rate of 15%, State tax rate of 5% and 7.65% FICA. Actual results may vary.
A Dependent Care FSA is a flexible spending account that allows you to set aside pre-tax dollars for dependent care expenses. Since DCA contributions are deducted from your paycheck pre-tax, your taxable income is reduced. Participants enjoy a 30% average tax savings on their annual DCA contribution.
- Pay for dependent care with tax free dollars.
- Reduce your taxable income .
- Helps you budget for dependent care expenses.
DCA funds cover care costs for your eligible dependents while you are at work:
- Before school or after school care (other than tuition)
- Custodial care for dependent adults
- Licensed day care centers
- Nursery schools or pre-schools
- Placement fees for a provider, such as an au pair
- Day camp, nursery school, or a private sitter
- Late pick-up fees
- Summer or holiday day camps