Dependent Care FSA Limit Calculator

The annual exclusion limit for a dependent care flexible spending account is $5,000 for most filers and $2,500 if married filing separately, as set in Internal Revenue Code Section 129. The excludable amount is also limited to your earned income and, if married, your spouse's earned income. This calculator applies the lowest of these limits.

Your excludable dependent care benefit cannot exceed your own earned income, and if you are married, it also cannot exceed your spouse's earned income. So a married couple where one spouse earns only $3,000 can exclude at most $3,000, even though the statutory limit is $5,000. This calculator takes the smallest applicable figure.

Contributions are excluded from federal income tax and from Social Security and Medicare (FICA) taxes. Your savings equal the excludable amount multiplied by your combined marginal rate. This calculator multiplies the excludable amount by the marginal tax rate you enter to estimate the savings.

You cannot use the same expenses for both. Amounts excluded through a dependent care FSA reduce the expenses eligible for the Child and Dependent Care Credit. Many families use the FSA up to its limit and then claim the credit on any remaining eligible expenses, subject to the credit's own dollar limits.

Qualifying expenses are work-related care costs for a child under 13 or a dependent unable to care for themselves, such as daycare, before- and after-school care, or a day camp. The care must let you (and your spouse, if married) work or look for work. Overnight camp and schooling at the kindergarten level or above do not qualify.