Using a Dependent Daycare FSA–
Make Summer Count—And Save While You Do It
Summer childcare doesn’t have to break the bank. If you’re a working parent, you already know that juggling schedules, camps, and sign-up deadlines can feel like a full-time job. Thankfully, your Dependent Care FSA can help take some of that stress off your shoulders—and offer a real financial advantage while doing it.
By using pre-tax dollars, you can save an average of 30% on eligible childcare expenses like summer day camps, nursery school, or even adult day care for your dependent parents.
How Does a Dependent Care FSA Work?
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You elect an annual contribution amount during your employer’s Open Enrollment.
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That amount is deducted pre-tax from your paycheck each pay period.
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You’re reimbursed for eligible care expenses—like day camps for children under 13—while you (and your spouse, if applicable) are working.
Because these dollars are set aside before taxes, you get to keep more of what you earn. That 30% savings can really add up!
A Quick Example:
Let’s say you elect to contribute $2,500 for the year and get paid bi-weekly:
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$2,500 ÷ 24 pay periods = about $104.16 deducted per paycheck, pre-tax
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That means you’re setting aside money efficiently and reducing your taxable income
Just remember: overnight camps aren’t eligible—but day camps, nursery school, and adult daycare services for a qualifying dependent may be.
A Few Key Rules to Know
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The annual contribution limit is $5,000 (per IRS rules, or $2,500 if married and filing separately).
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Funds are use-it-or-lose-it—they must be used within your plan year, unless your employer offers a grace period.
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Mid-year enrollment or changes may be allowed if you have a qualifying life event, like a change in daycare provider or job status.
Whether you’re signing up for the first time or a seasoned Dependent Care FSA user, this benefit offers a great way to make your summer spending work harder for you.
📌 Have questions? Reach out to your Harrison Group account manager to learn more.