Dependent Care Account (DCA)

A flexible spending account for dependent care (DCA or DCFSA) allows you to set aside funds from your paycheck on a pre-tax basis to pay for qualified dependent care expenses while you work, look for work, or attend school full-time.

Simply use your DCA debit card at the point of sale for services, or file a claim for reimbursement. Since the IRS governs this pre-tax benefit, you can only use your DCA funds for IRS-approved dependent care.

Learn More: DCA 101

DCA Eligible Expenses Include

Adult and senior day-care
Licensed before and after-school programs
AuPair or nanny for children
Work-related babysitting, not by a tax-dependent
Day nursing for dependent adults

Elder care
Nursery and preschool
Child care
Summer day camp for children
Not eligible: school tuition & assisted living

Get a full DCA tutorial

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Here's a quick overview:

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Beginners: Start Here!

Are you taking advantage of your pre-tax savings accounts, such as FSA or DCA? Let’s break it down:

What are tax-advantaged benefit accounts
What is an eligible expense
How much to save
How they save you money

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Answers to Your Questions

Determine how much you need to cover the year's dependent care expenses. We withhold that amount from your paycheck pre-tax in equal installments and deposit it into your DCA.

When you have an eligible expense, simply use your DCA debit card at the point of sale.

Alternately, you can pay with your own funds up front and submit a claim for reimbursement. Save your receipts; you may be required by the IRS to verify expenses.

To participate, you must enroll within 30 days of your date of eligibility, a qualifying event, or during annual open enrollment.

Use your DCA on day care, elder care, summer camp for children, and other dependent care expenses that allow you to work. Visit the Thrivepass DCA tutorial for a detailed rundown of DCA eligible items.

Yes, the IRS's "use it or lose it" rule requires any unused funds to be forfeited at the end of the plan year's grace period.

Participants have 90 days from the end of the plan year to file claims for the previous year.

Unlike the health FSA, you may not roll over a small, set amount of unused funds from one year to the next.

The DCA covers your children ages 12 and under, disabled spouse, elderly parent, or other dependent who is physically or mentally incapable of self-care.

The dependent must primarily live with you and be unable to care for him/herself. A daily facility is eligible. Assisted living is not.

Dependent care expenses must be work-related; necessary for you/your spouse to work, look for work, or attend school full-time.

The DCA is a "money in, money out" account. Funds are available as soon as they are deducted from your paycheck and deposited into your account, and not before.

You may set up a recurring claim for administrative ease. Here's how:
Recurring CLaim

You'll receive a debit card that's automatically loaded with your available funds. Use the debit card to pay your provider directly at the point of sale.

Watch this video for more info about the debit card:

Yes. You may utilize a DCA concurrently with other tax--advantaged saving accounts, including the FSA, HSA, LPFSA, and parking and transit FSA. This account is also available regardless of any other benefit plans you elect or waive.

Yes. Although this is a pre-tax contribution, the IRS does recognize that dependent care needs and expenses may change throughout the year, as long as you do not exceed the maximum allowable contribution.

If your employment ends, you may claim DCA expenses incurred only through the date of your termination. You must submit all claims within 30 days of your termination. Any funds not claimed within that time frame may be forfeited.

The maximum adjusts each year for inflation. For the current maximum, see IRS Publication 969. There is no minimum.

You can also see maximums in the annual deferral limits section of this page:

Annual Deferral Limits

No. Per IRS regulations, you must re-enroll each calendar year. Check out our annual FSA/HSA/DCA enrollment resources for more info on how that works:

DCA Annual Enrollment

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