Child and elder care can present significant expenses for you. With a Dependent Care FSA, you can pay less for child and elder care expenses by using tax-free dollars.
The Dependent Care FSA is available to employees making less than $150K/year. You can contribute up to $5,000 for the year through pre-tax payroll deductions to help cover your eligible dependent care expenses, including childcare for children up to age 13 and care for dependent elders. If you are married and file taxes separately, you can contribute up to $2,500. Make sure that you and your spouse limit your individual contributions to total no more than $5,000 combined.
How the Dependent Care FSA works
Choose
Choose your contribution amount when you enroll. You can only change it during the year if your personal situation changes, so estimate carefully.
Contribute
Your annual contribution will be divided into equal deductions from each paycheck. You can only use money that has been deposited into your account.
Spend
Spend your money by using your FSA debit card, or log in to the HealthEquity website to request reimbursement for payments you’ve made.
Use It Up
Unused money does not carry over at the end of each year — use it or lose it! Be sure to use it up. You have 90 days after the end of the year to submit claims for the prior year’s expenses.
