Don't Let Your Dependent Care FSA Money Expire
A Dependent Care FSA lets you pay for child care with pre-tax dollars, which can save a household in the 22% tax bracket several hundred dollars a year. The tradeoff is the "use it or lose it" rule: unless your employer offers a grace period of up to 2.5 months after the plan year ends, any unused balance is forfeited — there's no cash refund and no rolling it into next year in most plans.
This calculator takes your plan year end date and grace period option to show you the exact final deadline and how many days you have left to submit eligible expenses like daycare, preschool, or summer camp. Mark that date and use it as your cutoff for filing claims.
Frequently Asked Questions
A Dependent Care Flexible Spending Account lets you set aside pre-tax money (up to $5,000/year for most households) to pay for eligible child or dependent care expenses.
Unless your employer offers a grace period or limited carryover, unused Dependent Care FSA funds are forfeited under the "use it or lose it" rule at the plan year's end.
Daycare, preschool, before/after-school care, and summer day camps for a qualifying child under 13 are typically eligible if the care allows you (and your spouse) to work.