FAQs
Most Popular Questions
Is there a limit for a DCFSA election?
By law, the maximum amount you may allot for a DCFSA is $5,000 per household ($2,500 if married filing separately). You could exceed the $5,000 limit if both you and your spouse work for employers offering an FSA and the combined total of the allotments you each elect for a DCFSA goes beyond the applicable limit of $5,000. So, it is important that you plan carefully.
The IRS allows an income tax credit of up to $6,000 of dependent care expenses if you have two or more dependents (up to $3,000 for one dependent). The amount of the credit is based on your adjusted gross income and applies only to your federal income taxes. So, while the maximum allowed under a DCFSA is $5,000, you may be able to apply the incremental difference between the DCFSA maximum and the Child and Dependent Care Tax Credit depending on your tax situation.
For more information about this tax credit, please see IRS Form 2441, "Child and Dependent Care Expenses" (attached to Form 1040) (PDF), and its instructions. We also encourage you to seek guidance from your tax advisor.