DCFSA Guide
Turn caregiving into tax savings
Keep more of your hard-earned money. Plan your spending, know the rules and unlock amazing tax savings.
What is a Dependent Care Flexible Spending Account?
Expect Remarkable
A Dependent Care FSA (DCFSA) lets you set aside pre-tax dollars to pay for eligible dependent care expenses — like daycare, after-school programs, and elder care — so you can work.
How do I sign up?
Enroll during your employer's open enrollment period and elect your annual contribution. Changes are only allowed with a qualifying life event.
Plan your spending
Pay for dependent care expenses
Eligible expenses include daycare, preschool, after-school care, summer day camps, and elder care for a qualifying dependent.
Your savings can add up fast
$1,350
average annual tax savings for DCFSA account holders
| Year | Limit |
|---|---|
| 2025 | $5,000 |
Make your elections
Estimate your annual dependent care costs and elect that amount. You can only use funds as they are deposited each pay period.
Know the rules
Timing matters
Expenses must be incurred during the plan year. Funds not used may be forfeited.
Limited election period
You can only change your DCFSA election with a qualifying life event (e.g., birth, adoption, change in dependent care provider).
No double-dipping
You cannot claim the same dependent care expense for both your DCFSA and the dependent care tax credit.
We make it easy to get reimbursed:
- Submit claims online or via the mobile app
- Upload provider invoices or receipts
- Set up recurring reimbursements for ongoing care
DCFSA webinar
Watch our DCFSA on-demand webinar.
1Accounts must be activated via the HealthEquity website in order to use the mobile app.
2The example used is for illustrative purposes only; actual savings may vary. The figure is based on average tax rates, including state, federal and FICA taxes.
3If Married Filing Separately your limit is $3,750.
4Please refer to your plan documents for more information.
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.