Learn how a Dependent Care FSA can start saving you money!
A Dependent Care Flexible Spending Account, is a pretax benefit defined by the IRS and offered as a benefit by an employer.
A Dependent Care FSA allows employees to use pretax dollars, deducted from a paycheck, for eligible expenses related to dependent care. This type of benefit is only offered through an employer and cannot be subscribed independently as an individual tax payer.
Use your Dependent Care FSA to pay for a variety of child care services such us preschool, summer day camp, before or after school programs, and child or adult daycare.
While you and your spouse are working, looking for work or attending school full-time.
Life with children comes with many unpredicted expenses and planning can be a challenge. Generally, we encourage all parents to enroll at open enrollment with an annual election that best fits your family budget, but life happens. IRS regulation allows for you to change your annual election or enroll into a Dependent Care FSA due to a change in cost or coverage within 30 days of the qualified event. Learn additional life situations that qualify as a Change in Status or Qualifying event.
With TASC’s Universal Benefit Mobile App, paying for child care expenses is fast and easy.
Simply swipe your TASC card at your child care provider office or enter the card number into the provider payment portal.
Take a picture of the invoice, enter the amount you would like to pay, review it, and then submit. That’s all there is to it!
Child care subsidies (also called vouchers and fee assistance) help families pay for childcare expenses. Learn more about the Federal, State and local subsidy programs.
Whether you are an employer trying to understand how you can help working families save on child care costs, or a parent trying to understand how a Dependent Care FSA works, we’re here to help you. Contributing to a pre-tax benefit account, such as a Dependent Care FSA, allows employers and employees to save on FICA and Social Security tax normally deducted from each paycheck prior to calculating take-home pay. Think of it as an instant raise in wages as employers and employees pay less in payroll taxes!
Learn from other parents how fast and easy TASC’s Dependent Care FSA makes paying for child care expenses.
My Dependent Care FSA is the easiest of all my benefits to use. I simply have my Daycare Provider provide my annual contract at the beginning of the year, submit it with my first claim, and the rest is automatically loaded to my card’s MyCash every payday! I love saving up my MyCash for holiday funds, vacation money, etc.
I utilize my Dependent Care FSA funds to coordinate for camps and programs during breaks and during the summer. As a working single parent and student, it is not always easy to arrange care for my daughter when school is out. Having the funds available to cover camps and programs is a true blessing. The funds are taken out my check and I just submit for reimbursement; a very easy and convenient process.
I provide a copy of my annual contract to TASC each year, enter one claim at the start of the year. My reimbursement is automatically processed and direct deposited into my special bank account that is used for just daycare expenses. It’s comforting to know the money is there when I need it!
The IRS sets the same eligibility requirements for the Child and Dependent Care Credit (CDCC) as for the Dependent Care FSA. The same expenses also qualify. However, the tax benefit works differently.
Consult your tax advisor to determine what tax benefit is more advantageous for you.
Across the nation, the child care market is failing. In today’s society, to achieve a middle-class income, both parents need to work. Learn how Dane County Community Leaders are coming together to help solve the child care problem.
Get answers to frequently asked questions about Dependent Care FSA accounts