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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, equivalent to 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 might be an effective way to economize on childcare and different dependent care bills. The cash that’s contributed to the account will not be topic to federal earnings tax, and it may be used to pay for a wide range of bills, together with:

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The 2025 dependent care FSA restrict is the utmost sum of money that may be contributed to a dependent care versatile spending account (FSA) in 2025. Dependent care FSAs are employer-sponsored accounts that permit staff to put aside pre-tax {dollars} to pay for eligible dependent care bills, equivalent to childcare, eldercare, and summer time camp. The restrict for 2025 is $5,000, which is identical because the restrict for 2024.

Dependent care FSAs supply a number of advantages. First, they can assist staff lower your expenses on childcare and different dependent care bills. Second, they will cut back staff’ taxable revenue, which may result in a decrease tax invoice. Third, they will make it simpler for workers to steadiness their work and household obligations.

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