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NEWS FLASH! American Rescue Plan Act (ARPA) offers yet another valuable benefit to Dependent Care FSA plans! Learn more

Learn How You
Can Save Money
On Child Care Costs!

More Legislative Changes To Dependent Care FSA for 2021

On March 11th, the American Rescue Plan ACT (H.R. 1319) was signed into law by President Biden and would expand upon the relief of H.R. 8337 passed on December 21,2020 called, the Consolidated Appropriation Act, 2021 and Other Extension Act. Both pieces of legislation provide temporary relief to Flexible Spending Participants.

Parents may elect up to $10,500 in a Dependent Care FSA plan to use for eligible expenses throughout the 2021 calendar year. This is more than double the standard cap of $5,000 per couple/$2,500 single, which also doubles a family’s average tax savings to $200 a month!
Parents may carry over any amount of unused contributions from 2020 into their 2021 DC-FSA plan year, as well as from 2021 into 2022. With the increased election limit for 2021, that could equate to a potential carryover amount of up to $15,500 into the 2022 plan year!
Parents may submit eligible DC-FSA claims for dependents up to age 14 years old (previously up to 13 years old).
Parents may make midyear DC-FSA election changes or enroll in a DC-FSA plan with no employment status requirement.

*There will be a small percentage of employers whose benefit plans do not allow for these changes, so it’s important to speak to your Human Resource Department to determine if you or your spouse are eligible.

Did you know?

Parents with children in full-time child care are spending on average $15,000 per year for infant care, $11,000 for toddler care and $4,400 for after school care?

Child care costs are a huge expense for working parents, but with a Dependent Care FSA, working parents can save on average $100 a month.

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Learn how a Dependent Care FSA can start saving you money!

Learn About a Dependent Care FSA

What is a Dependent Care Flexible Spending Account?

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.

What Are My Eligible Expenses?

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.

Qualified Events & Enrollment

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.

TASC Universal Benefit Account

With TASC’s Universal Benefit Mobile App, paying for child care expenses is fast and easy.

Child Care Subsidy Programs

Child Care Subsidies

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.

We’re here to help you

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!

Meet Parents who save money on child cares with Dependent Care FSA

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.
Krista P.

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.
Kirk S.

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!
Jen K

Additional Resources & Information

Dependent Care FSA vs. Child & Dependent Tax Credit

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.

We Care for Dane Kids

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.

Frequently Asked Questions

Get answers to frequently asked questions about Dependent Care FSA accounts

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Madison, WI 53704-3140

833-908-2223

Learn How You
Can Save Money
On Child Care Costs!

More Legislative Changes To Dependent Care FSA for 2021