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, 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 may 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 revenue tax, and it may be used to pay for a wide range of bills, together with:
