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questions and answers about health insurance and employee benefits

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Health Insurance FAQs
Health Insurance FAQs

questions and answers about health insurance and employee benefits

DCAs

Dependent Care Accounts (DCAs), a type of FSA, allow employees to set aside pre-tax dollars to pay for eligible child care or dependent care expenses. These FAQs cover contribution limits, qualifying dependents, eligible expenses, and coordination with other tax benefits like the Child and Dependent Care Tax Credit.

Can I still claim the Child and Dependent Care Tax Credit if I use a Dependent Care Account?

HealthInsuranceFAQs, June 16, 2025January 26, 2026

Short answer: Yes, but not for the same expenses. Any child or dependent care costs reimbursed through a Dependent Care Account must be excluded from the expenses you claim for the tax credit.

What expenses can I pay for with a Dependent Care Account (DCA)?

HealthInsuranceFAQs, June 16, 2025January 26, 2026

Short answer: You can use a Dependent Care Account to pay for eligible child or adult care expenses that allow you (and your spouse, if married) to work or look for work.

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Tax-Advantaged Accounts

  • POPs – Premium Only Plans
  • FSAs – Flexible Spending Accounts
  • DCAs – Dependent Care Accounts
  • HSAs – Health Savings Accounts
  • HRAs – Health Reimbursement Arrangements
  • MERPs – Medical Expense Reimbursement Plans
  • MPRAs – Medicare Premium Reimbursement Arrangements
  • ICHRAs – Individual Coverage HRAs
  • QSEHRAs – Qualified Small Employer HRAs

Compliance Requirements

  • Marketplace Notice
  • HIPAA Notice
  • COBRA
  • State Continuation
  • SBCs
  • ERISA
  • Medicare Part D Notice
  • Medicare Secondary Payer
  • RxDC Reporting
  • Employer Reporting
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