Can I pay for child care before taxes?How much can I contribute?What is TaxBit contributing?
Plan Options: Dependent Care Flexible Spending Account
A Dependent Care Flexible Spending account can be used to help offset your out-of-pocket child care expenses. This account allows you to pay child or dependent care on a pre-tax basis and can save you 10% – 30%, depending on your personal tax rate.
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Dependent Care Account |
This account allows you to make pre-tax deductions from payroll and then use those pre-tax funds to pay for eligible expenses. The plan administrator, Paylocity, will help you manage your accounts and claims processing.
The Dependent Care Flexible Spending Account allows you to set aside pre-tax dollars to pay for qualifying out of pocket child or dependent care expenses allowing you to save you 10% - 30%, depending on your personal tax rate.
The Dependent Care Flexible Spending Account allows you to set aside pre-tax dollars to pay for qualifying out of pocket child or dependent care expenses allowing you to save you 10% - 30%, depending on your personal tax rate.
DEPENDENT CARE ASSISTANCE PLAN
What would I use this account for?
Eligible dependent care expenses, including adult day care centers, babysitters or nannies, summer day camp, before & after school programs, and child day care.
Who is eligible for this account?
In order to be eligible for this account, you must meet one of the qualifying criteria:
- You and your spouse both work
- You are a single head of household
- Your spouse is disabled or a full-time student
- Employees with children under age 13 and anyone who is a dependent under IRS rules, or who is mentally or physically incapable of taking care of himself or herself
- Employees scheduled to work less than 30 hours per week are not eligible.
What is the maximum amount that I can put in this account?
$5,000 If you are single
$5,000 If you are married & filing jointly
$2,500 If you are married & filing separate tax returns
$5,000 If you are married & filing jointly
$2,500 If you are married & filing separate tax returns
What does the company contribute?
TaxBit does not contribute to this account.
When are the funds available?
Your contribution amount is available as it comes out of your paycheck each pay period — not at the beginning of the year.
How do I use the funds?
You can use this account to reimburse yourself for eligible dependent care expenses for children under age 13 or anyone who is a dependent under IRS rules.
What happens if I don’t use the money during the year?
You have until March 15, 2026 to submit reimbursement for expenses that were incurred during 2025. Per IRS regulations, you to forfeit any money in your account after March 31, 2026.
Any unused funds at the end of the plan year are forfeited per IRS regulations.
If your employment at TaxBit terminates, you have 90 days following your termination to submit reimburesment for expenses incurred up to your termination date.
Any unused funds at the end of the plan year are forfeited per IRS regulations.
If your employment at TaxBit terminates, you have 90 days following your termination to submit reimburesment for expenses incurred up to your termination date.
