Dependent Care FSA — Frequently Asked Questions
Is Dependent Care FSA money use-it-or-lose-it?
Generally yes. Unlike a Health FSA, the Dependent Care FSA is not eligible for the IRS carryover provision. Your employer's plan may offer a grace period of up to two and a half extra months to spend remaining funds, or allow a short run-out period to submit claims for expenses incurred during the plan year — but unused funds beyond that are typically forfeited. Check your plan document for the specific rules that apply to you.
What is the 2026 Dependent Care FSA limit?
For 2026, the limit is $7,500 per household ($3,750 if married filing separately), up from $5,000 in 2025, under the One Big Beautiful Bill Act (OBBBA).
Can I change my election mid-year?
Only if you have a qualifying life event, such as a change in marital status, a change in the number of dependents, a change in employment status for you or your spouse, or a significant change in care costs or providers. Contact your HR or benefits team promptly after the event, as most plans require you to request the change within 30 days.
What happens to my Dependent Care FSA if I leave my job?
Unlike a Health FSA, a Dependent Care FSA is not subject to COBRA continuation. You can typically only be reimbursed for eligible expenses incurred while you were an active employee and plan participant, up to the amount you've actually contributed by that point.
Can both spouses use a Dependent Care FSA?
Only one spouse can contribute to a Dependent Care FSA for the same dependent's care in a given year if you file jointly — but if you file separately, each spouse's limit drops to the married-filing-separately amount. If each spouse has access to a DCFSA through a different employer, your combined household contribution still cannot exceed the joint limit.
Should I use a Dependent Care FSA or the Child and Dependent Care Tax Credit?
You cannot claim the tax credit on expenses already reimbursed through your FSA. For most middle-to-higher income households, the FSA's payroll tax savings tend to outweigh the credit, but the credit can be more valuable for lower-income households. Run the numbers for your specific situation, or ask a tax professional.
Do I need a Social Security Number for my care provider?
Yes. To claim Dependent Care FSA reimbursements (and the related tax credit), you generally need your care provider's taxpayer identification number — a Social Security Number for an individual, or an Employer Identification Number for a daycare business.