Dependent Care FSA DCFSAs are spending accounts that let you use pre-tax dollars to pay for eligible dependent care expenses 2026 IRS Contribution Limits $7,500 per household Note: For married couples who file taxes separately, the 2026 limit is $3,750 per person per year.
Care for dependents who are under 13 years old
Eligible Expenses
Before and after school care Babysitting and nanny expenses Daycare, nursery school, and preschool Summer day camp
A dependent may qualify regardless of age if they are Physically or mentally incapable of self-care Lives with you in your home for more than half the year You claim them as a dependent on your tax return
Care for your spouse, elders, or other dependents Eligible Expenses Senior day care In-home assistance Transportation to eligible health services
Visit IRS.gov for more info on rules, regulations, and eligilble expenses.
Why Choose a DCFSA Millions of Americans use a DCFSA to help defray costs associated with childcare or elder care. With UMB Bank, you can pay your dependent care provider directly with the DCFSA debit card linked to your account. Or you can pay for services like usual, then reimburse yourself out of the account later.
Sample Savings Breakdown
Without DCFSA
With DCFSA
Gross annual income
$60,000
$60,000
Max DCFSA contribution
-$7,500
$Ø
Important account features and regulations
Taxable annual income
$52,500
$42,000
Estimated Tax rate (30%) Take home pay after taxes Estimated annual dependent care expenses
-$15,750
-$18,000
Account funds are available only as you make contributions. Unused account funds will return to your employer at the end of the plan year. So select your contribution amount carefully. To be eligible for a dependent care FSA, both the employee and their spouse (if applicable) must work, be looking for work or be full-time students.
$36,750
$40,200
$Ø (prepaid with DCFSA)
-$7,500
Final take home pay
$36,750
$32,700
Final Savings: $4,050
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