What are dependent care benefits?
Dependent care benefits are employer-provided or tax-authorized programs that help employees pay for the care of dependents — typically young children or family members who cannot care for themselves. These benefits commonly appear as a dependent care flexible spending account (FSA), a child and dependent care tax credit, or paid family leave. For eligible households, the tax and cash value of these programs can add up to thousands of dollars.
Key definitions
– Dependent: A person who meets IRS rules allowing a taxpayer to claim them on a tax return; children are the most common dependents, but relatives or other household members can qualify if they meet IRS conditions.
– Dependent care flexible spending account