How much you can contribute
| Filing status | 2025 contribution limit | 2026 contribution limit |
|---|---|---|
| Single or married filing jointly | $5,000 | $7,500 |
| Married filing separately | $2,500 | $3,750 |
Source: IRS Publication 503
What expenses qualify
- Daycare, preschool, and before- or after-school programs
- A nanny, babysitter, or in-home caregiver
- Day camps (overnight camps don’t qualify)
- Care for a spouse or adult dependent who can’t care for themselves
How to enroll and file claims
- Enroll during your employer’s open enrollment, usually within 30 days of hire for new employees.
- Choose your annual contribution. It’s deducted from your paycheck before taxes throughout the year.
- Pay for eligible care, then submit a claim with receipts through your plan administrator for reimbursement.
- Report your contributions on Form 2441 when you file, since they reduce the expenses left over for the Child and Dependent Care Credit.
How to avoid losing unused funds
Dependent care FSAs are “use it or lose it”. Unlike some health FSAs, dependent care FSAs don’t allow a rollover into the next year. Some employers offer a grace period, often through March 15, to incur new expenses against last year’s balance. Check your plan’s rules before year-end, and don’t contribute more than you’re confident you’ll spend.
FSA or the Child and Dependent Care Credit
You generally can’t double-dip: FSA contributions reduce the expenses left over for the Child and Dependent Care Credit dollar for dollar. Higher earners often come out ahead with the FSA’s pre-tax savings, while lower earners may get more from the credit’s larger percentage.
