A dependent care versatile spending account (FSA) is an employer-sponsored account that permits staff to put aside pre-tax {dollars} to pay for certified dependent care bills, similar to childcare, eldercare, or summer season 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 will be a good way to economize on childcare and different dependent care bills. The cash that’s contributed to the account is just not topic to federal earnings tax, and it may be used to pay for a wide range of bills, together with: