Participating in a Dependent Care Flexible Spending Account is like receiving a 30% discount from your care provider.
A Dependent Care Flexible Spending Account (DCA) is designed to provide financial support to parents who work full-time and must find care for a dependent child or adult while they are working.
This kind of FSA allows you to set aside pre-tax dollars for IRS-eligible child and adult expenses.
Child and dependent care is a large expense for many American families. Millions of people rely on child care to be able to work, while others are responsible for older parents or disabled family members.
If you pay for the care of dependents in order to work, you’ll want to take advantage of the savings this plan offers.
Money contributed to a DCA is free from federal income, Social Security, and Medicare taxes and remains tax-free when it is spent.
The IRS limits annual contributions to $5,000 on income tax returns for single or married couples filing jointly, and $2,500 for married couples filing separately.
We make it easy to access your DCA funds.
With a DCA, you can only spend up to the amount that has been deducted from your paycheck.
If you have a Difference Card, then you can access your funds with the swipe of a card, or you can submit claims for reimbursement to The Difference Card Claims Department.