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Dependent Care FSA


Day Care FSA Participant Tax Savings Example

Jill earns $36,000 annually and has day care expenses for her children that are $5,000 per year. See below the impact that participating in a Day Care FSA will make on Jill's take home pay!

Without Day Care FSA

Gross Pay$36,000
Taxes @ 24.5%-$8,820
Net Take Home$27,180
Out of Pocket Day Care Costs-$5,000
Spendable Income After Day Care Costs:$22,180

With Day Care FSA

Gross Pay$36,000
Pre-Tax Day Care Deduction:-$5,000
Taxable Pay$31,200
Taxes @ 24.5%-$7,595
Spendable Income After Day Care Costs:$23,405

By pariticipating in the Day Care FSA Jill has increased her take home pay by $1,225 per year!

Dependent Care FSA
What is it?
How does it work?
Filing a claim
Tax Savings Example
 
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