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.
A Dependent Care Account (DCA) can be used for care provided to a child under age 13, or to a spouse or other dependent who lives with you and is physically or mentally incapable of self-care.
Eligible expenses generally include day care, preschool, before- and after-school programs, summer day camps, and in-home care such as nannies or babysitters, as long as the caregiver is not your spouse, your tax dependent, or your own child under age 19.
The care must enable you (and your spouse, if applicable) to work or actively look for work, and the provider must be properly identified for tax reporting purposes.
Expenses that typically do not qualify include overnight camps, kindergarten or school tuition, tutoring, transportation-only services, and payments made to your spouse or certain family members.
For 2026, the dependent care FSA contribution limit increased to $7,500 ($3,750 if married filing separately) under the One Big Beautiful Bill Act, the first increase since the $5,000 limit was set in 1986. That is the maximum you can set aside pre-tax each year, and the new limit is not indexed to inflation.
Sources
- IRS Publication 503: Child and Dependent Care Expenses: https://www.irs.gov/publications/p503
- Internal Revenue Code §129 (Dependent Care Assistance Programs); One Big Beautiful Bill Act (2025), raising the §129 exclusion to $7,500 effective 2026.
Content history
Originally published: June 16, 2025
Last reviewed: June 16, 2026