·Federal program
Dependent Care FSA / Employer Dependent Care Assistance Program (IRC §129)
Pre-tax payroll benefit allowing employees to set aside up to $7,500 per year (starting 2026, raised from $5,000 by OBBBA) for work-related child or adult dependent care expenses, including adult day care for a disabled spouse or elderly parent. Reduces federal income and FICA taxes. Employer-sponsored — not all employers offer it. Coordinates with (reduces) the Child and Dependent Care Tax Credit dollar-for-dollar.
What it offers
A Dependent Care FSA or employer Dependent Care Assistance Program lets an employee exclude qualified dependent-care benefits from wages when the care lets the employee work. For 2026, IRS Publication 15-B says employers report both the nontaxable portion up to $7,500 and taxable amounts above that level in Form W-2 box 10; married filing separately is limited to $3,750. IRS Publication 503 treats pre-tax dependent care FSA contributions as dependent care benefits and limits the exclusion or deduction to the smallest of benefits received, qualified expenses incurred, the employee's earned income, the spouse's earned income, and the maximum amount allowed under the plan. Qualifying care can include care for a child under 13 or a spouse or dependent who is physically or mentally incapable of self-care. Dependent care benefits reduce expenses available for the Child and Dependent Care Credit. Enrollment and grace-period details are employer-plan terms, so caregivers should check open enrollment and plan documents.
Questions that decide eligibility
GiveCare prepares the questions; the program makes the decision. Bring these to the call or the application:
- 01
Does the VA disability rating meet the program’s minimum (our record lists null%)?
- 02
Do the work hours meet the minimum (our record lists null hours)?
- 03
Which tax year does this apply to, and what form claims it?
- 04
Does your employer already offer this, and have they told staff?
Some credits are claimed by the employer, not by you — asking is the move.