A dependent care versatile spending account (FSA) is an employer-sponsored account that enables staff to put aside pre-tax {dollars} to pay for certified dependent care bills, resembling childcare, eldercare, or summer time camp. The utmost quantity that may be contributed to a dependent care FSA in 2023 is $5,000 for single taxpayers and $10,500 for married {couples} submitting collectively.
Dependent care FSAs could be an effective way to economize on childcare and different dependent care bills. The cash that’s contributed to the account will not be topic to federal revenue tax, and it may be used to pay for quite a lot of bills, together with: