A Dependent Care Flexible Spending Account (DCFSA) is an employer-sponsored account that covers pay for services to care for children up to age 13, or elderly or disabled adult dependents. Compatible with other types of benefits, you can be simultaneously enrolled in a DCFSA, an HSA or another type of FSA.
DCFSA eligibility requirements and contribution limits
To be eligible for a DCFSA you must:
- Access the benefit through your employer.
- Have at least one of the following living with you full time: a child who is under the age of 13 or a spouse or relative who is physically or mentally incapable of taking care of themselves.
- If the employee and their spouse are divorced, only the spouse with primary custody may contribute to this type of FSA.
- If the employee is married, both spouses must work and earn income unless one spouse is disabled and unable to work. If employees don't follow these rules, the money they and the company contribute to their FSA will be forfeited and they will have to pay income taxes on the forfeited amount.
The IRS annual limit for 2025 employee contributions to a dependent care is $5,000 for single people or married couples filing jointly.
They may contribute up to $2,500 if they're married but file taxes separately (each spouse can contribute $2,500 to separate FSAs).
Employers may contribute to a DCFSA, but those contributions count towards the contribution limit.
What does a DCFSA cover?
Acceptable Dependent Care FSA expenses include:
- Physical care.
- In-home care, such as an au pair, nanny, or babysitter.
- Care in an institutional setting like child or adult daycare given by qualified caregivers.
- Transportation provided by caregivers.
- Application fees, deposit, etc. required for obtaining care (but only if care subsequently provided).
