Dependent Care FSA Calculator: See How Much You'll Save in 2026

What Is a Dependent Care FSA?

A Dependent Care Flexible Spending Account (DCFSA) is an employer-sponsored benefit that lets you set aside up to $5,000 per year in pre-tax dollars for eligible childcare expenses. Because the money is deducted from your paycheck before federal income tax, state income tax, and FICA taxes (Social Security and Medicare), you reduce your tax bill dollar-for-dollar on every dollar you contribute.

For a family in the 22% federal tax bracket with a 5% state tax rate, contributing the full $5,000 saves approximately $1,883 per year — that's $157 back in your pocket every month. The calculator below gives you a personalized estimate in seconds.

DCFSA Savings Calculator

How the DCFSA Works

Enrollment During Open Enrollment

You elect your DCFSA contribution amount during your employer's annual open enrollment period, typically in November for the following calendar year. You choose a fixed annual amount (up to $5,000), which is then divided evenly across your paychecks throughout the year. Outside of open enrollment, you can only change your election if you experience a qualifying life event such as the birth of a child, a change in marital status, or a change in employment.

The Use-It-or-Lose-It Rule

Unlike health FSAs, dependent care FSAs cannot roll over unused funds to the next year. Any money left in your account at the end of the plan year is forfeited. This makes it essential to estimate your childcare costs carefully and contribute conservatively if you're unsure.

Grace Period Option

Some employers offer a 2.5-month grace period after the plan year ends, giving you until March 15 of the following year to incur eligible expenses against the prior year's balance. Not all plans include this, so check with your HR department. There is no carryover option for dependent care FSAs.

Eligible Expenses

DCFSA funds can be used for care that enables you (and your spouse, if married) to work or look for work. This includes daycare, preschool, nanny wages, au pair stipends, before/after school care, and day camp for children under age 13. Reimbursement requests require documentation of the provider's name, address, and tax ID number.

DCFSA vs. Child and Dependent Care Tax Credit

Both the DCFSA and the Child and Dependent Care Tax Credit reduce your childcare costs, but they work differently. The right choice depends on your income, number of children, and whether your employer offers a DCFSA.

When the DCFSA Wins

• Your household income is above $43,000 (credit drops to 20%)
• You have one child (DCFSA saves more than the $600 max credit)
• You're in the 22% bracket or higher and pay state income tax

When the Tax Credit Wins

• Your income is below $30,000 (credit percentage is 27–35%)
• You're self-employed and don't have access to an employer DCFSA
• Your childcare expenses are low and you're unsure you'll spend $5,000

Eligible Expenses for a DCFSA

What Qualifies

• Daycare center tuition and fees
• In-home daycare / family childcare
• Nanny or babysitter wages
• Au pair stipend (the childcare portion)
• Before-school and after-school care programs
• Day camp (including sports, arts, and specialty camps)
• Preschool and pre-kindergarten tuition

What Does Not Qualify

• Overnight camp or sleepaway camp
• Food, clothing, or entertainment for the child
• Kindergarten or school tuition (considered education)
• Tutoring, piano lessons, or other primarily educational activities
• Care provided by your spouse or a dependent under age 19
• Medical or healthcare expenses

Key Rules & Deadlines

• Contribution limit: $5,000 per household ($2,500 if married filing separately)
• Both spouses must work: If married, both partners need earned income — or one must be a full-time student or disabled
• Age 13 cutoff: The child must be under 13 at the time of care. The account cannot cover care for children 13 and older (unless disabled)
• Enrollment periods: Annual open enrollment (typically November) or within 30 days of a qualifying life event
• Plan year: Usually January 1 through December 31; expenses must be incurred during this period
• Claims deadline: Most plans require you to submit reimbursement claims within 90 days after the plan year ends
• Provider tax ID required: You must supply your childcare provider's Social Security Number or EIN when filing Form 2441
• Cannot change mid-year: Your elected amount is fixed unless you experience a qualifying life event (birth, marriage, job change)

Frequently Asked Questions