Free to Use

Dependent Care FSA Calculator

Estimate your tax savings with a Dependent Care FSA. See how much you can save on eligible childcare and dependent care expenses.

Total eligible expenses for the year
Children or qualifying dependents
Your total taxable income for the year
Select your state for state tax savings

Example Scenarios

Scenario Annual Costs Filing Status Income FSA Contribution Total Tax Savings Net Cost
Single Parent, 1 child $6,000 HOH $45,000 $5,000 $1,483 $4,517
Married, 2 children $12,000 MFJ $85,000 $5,000 $1,833 $10,167
Married, 1 child $4,000 MFJ $120,000 $4,000 $1,666 $2,334
Single, 1 child $10,000 Single $65,000 $5,000 $1,733 $8,267

Note: Examples assume a 5% state tax rate. Actual savings depend on your specific tax situation.

How the Dependent Care FSA Calculator Works

FSA Contribution Limit

Your FSA contribution is the lesser of your actual annual dependent care costs and the federal maximum of $5,000 (for single, married filing jointly, and head of household filers).

Note: Married filing separately filers are also subject to the $5,000 limit but may have additional restrictions depending on spouse's elections.

Formulas

  • FSA Contribution = min(Actual Costs, $5,000)
  • Federal Tax Savings = FSA Contribution × Federal Marginal Tax Rate
  • FICA Tax Savings = FSA Contribution × 7.65% (if income under Social Security wage base)
  • State Tax Savings = FSA Contribution × State Tax Rate
  • Total Tax Savings = Federal + FICA + State Savings
  • Net Cost After FSA = Actual Costs − Total Tax Savings
  • Out-of-Pocket (No FSA) = Actual Costs × (1 − Marginal Tax Rate)
  • Savings vs No FSA = Out-of-Pocket (No FSA) − Net Cost After FSA

Federal Tax Brackets (2025)

Rate Single Married Filing Jointly Head of Household
10%$0 – $11,925$0 – $23,850$0 – $17,000
12%$11,926 – $48,475$23,851 – $96,950$17,001 – $65,000
22%$48,476 – $103,350$96,951 – $206,700$65,001 – $103,350
24%$103,351 – $197,300$206,701 – $394,600$103,351 – $197,300
32%$197,301 – $250,525$394,601 – $501,050$197,301 – $250,525
35%$250,526 – $626,350$501,051 – $751,600$250,526 – $626,350
37%$626,351+$751,601+$626,351+

FICA Tax (Social Security & Medicare)

FICA taxes consist of 6.2% for Social Security and 1.45% for Medicare, totaling 7.65%. FSA contributions reduce your taxable wages, so you save on FICA taxes too. The Social Security portion only applies to wages up to the annual wage base ($176,100 in 2025).

What is a Dependent Care FSA?

A Dependent Care Flexible Spending Account (DC-FSA) is a tax-advantaged account offered by employers that allows you to set aside pre-tax dollars to pay for eligible childcare and dependent care expenses. By using pre-tax dollars, you reduce your taxable income, resulting in lower federal income tax, FICA taxes, and often state income taxes.

Funds in a Dependent Care FSA can be used to pay for care that enables you (and your spouse, if married) to work, look for work, or attend school full-time. This includes care for children under age 13, as well as care for disabled spouses or other qualifying dependents who cannot care for themselves.

Unlike a Health Care FSA, Dependent Care FSAs have a use-it-or-lose-it provision, but many employers offer a grace period or allow you to carry over unused funds. The maximum annual contribution is $5,000 per household (or $2,500 if married filing separately).

Eligible Expenses

Dependent Care FSA funds can be used for a wide range of qualifying expenses. Below are common eligible and ineligible expenses:

✅ Eligible Expenses

  • Daycare centers and preschools
  • Before- and after-school programs
  • Nursery school and kindergarten
  • Licensed in-home care providers
  • Summer day camps (not overnight)
  • Nannies and au pairs (portion for care)
  • Adult daycare for disabled dependents
  • Registration and application fees for care

❌ Ineligible Expenses

  • Overnight camps
  • Educational tutoring
  • Private school tuition (K-12)
  • Transportation to/from care
  • Food and clothing
  • Entertainment and activities
  • Care provided by your spouse
  • Care provided by a dependent you claim

Related Calculators

Frequently Asked Questions

What is the maximum I can contribute to a Dependent Care FSA?
The maximum annual contribution to a Dependent Care FSA is $5,000 per household (or $2,500 if you are married and filing separately). This limit is set by the IRS and applies regardless of how many dependents you have. Your actual contribution can be less if your total care costs are below $5,000.
Can I use a Dependent Care FSA and the Child and Dependent Care Tax Credit together?
No, you cannot use both a Dependent Care FSA and claim the Child and Dependent Care Tax Credit for the same expenses. However, if your total qualifying expenses exceed your FSA contribution, you may be able to claim the tax credit on the excess amount. It's generally beneficial to run the numbers both ways to see which option saves you more.
What happens to unused funds in my Dependent Care FSA?
Dependent Care FSAs are generally subject to the "use-it-or-lose-it" rule. However, many employers offer a grace period of up to 2.5 months after the plan year ends to incur expenses, or a carryover provision that allows you to roll over up to $500 to the next year. Check with your employer's specific plan rules.
Who qualifies as a dependent for Dependent Care FSA purposes?
Qualifying dependents include: (1) children under age 13 who are your tax dependents, (2) a spouse who is physically or mentally incapable of self-care, and (3) any other tax dependent who is physically or mentally incapable of self-care. The care must be provided so that you (and your spouse, if married) can work, look for work, or attend school full-time.
Does my employer have to offer a Dependent Care FSA?
No, Dependent Care FSAs are voluntary benefits. Employers are not required to offer them. If your employer does not offer one, you may want to suggest it as a benefit or explore other tax credits like the Child and Dependent Care Tax Credit. Some employers also offer Dependent Care FSAs through a Section 125 cafeteria plan.
Is the Dependent Care FSA limit per person or per household?
The $5,000 limit is per household, not per child. If you are married, both you and your spouse can contribute to separate Dependent Care FSAs through your respective employers, but the total combined contribution cannot exceed $5,000. If you are married filing separately, the limit is $2,500 per spouse.

⚠️ Important Disclaimer

This calculator provides estimates for educational purposes only and does not constitute tax, legal, or financial advice. Actual tax savings depend on your specific circumstances, including your exact filing status, state and local tax rates, and other tax credits or deductions you may qualify for. Always consult with a qualified tax professional for advice specific to your situation. Tax laws and limits are subject to change.