Do you have children who need day care, or before- or after-school care? Or perhaps you have an aging parent who lives with you and requires care while you’re at work? Tired of writing checks to your day care provider? A Dependent Care Flexible Spending Account (DCFSA) can help you save up to 30% on day care costs by reimbursing you with tax-free money.
It’s important to note that the Dependent Care FSA is not for health care expenses. It specifically covers day care needs, allowing you to work with peace of mind. If you’re married, your spouse must be working, looking for work, or attending school full-time to qualify.
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Contribution limits
A Dependent Care FSA allows you to set aside money before it’s taxed, and use it to pay qualified day care expenses. Expenses can be for your children or a dependent adult who lives with you and depends on you for support. Day care must be required so that you (and your spouse, if married) can work or attend school full-time.
2025: $5,000 annual maximum
2026: $7,500 annual maximum
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Claim deadline
Claims must be filed by the deadline shown.
You have 90-day runout to submit claims in the new calendar year for the previous year (you have until March 31, 2026 to submit claims for January 1, 2025 - December 31, 2025).
If you terminate FSA mid-year while employed at Avalon, you will not be eligible for carryover.
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Unused funds carry over?
No.
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What expenses are eligible?
Generally, eligible expenses include day care expenses for dependents you can claim on your tax return (children up to age 13 or adult dependents incapable of self-care). The Dependent Care FSA is NOT for dependents’ health care needs. See IRS Publication 503 for full details.
Eligible expenses include au pair expenses, day care center expenses, babysitter expenses, preschool tuition, before and after school care expenses, and summer day camp expenses.
Ineligible expenses include educational expenses, overnight camps, non-work-related expenses, expenses paid to a dependent child, kindergarten/higher-grade tuition, and daycare meals/supplies.
Expenses must be for the care of a dependent under age 13, or over age 13 only if the dependent is mentally or physically incapable of self-care.
Expenses must allow you (and if married, your spouse) to work.
See www.irs.gov Publication 503.
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Can I invest the money in my account?
No.
Dependent Care FSA Plan
Provider: Trustmark
Phone: 877-267-3359
https://web9.trustmarkcompanies.com/apps/um/login/hb_login.jsp