Flexible Spending Account

[Hayleemphillips]

What is a FSA and how can I use it for childcare?

[EricE_CPA]

Hi Hayleemphillips

A Flexible Spending Account (also known as a flexible spending arrangement) is a special account you put money into that you use to pay for certain out-of-pocket health care costs.

A Flexible Spending Account is NOT eligible for daycare expenses, however, a DependentCare FSA is eligible.

A Dependent Care FSA (DCFSA) is a pre-tax benefit account used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare