Consolidated Administrative Services
A Dependent Care Assistance Plan (DCAP) is a tax-exempt benefit you can use to pay your out-of-pocket expenses for the custodial care of dependents claimed on your federal income tax return. Your account in the Plan is funded by tax-free dollars that you set aside from your paycheck in order to use as payment for eligible day care type services.
Maximum contribution is $5,000 for Dependent Care ($2,500 if married and filing separate returns) – $416.66 per monthly pay period.
Review this brochure for more information
Caution: Dependent Care Flexible Spending Accounts are subject to the Internal Revenue “use-it-or-lose-it” rule. We suggest that you underestimate your expenses for the first year until you become accustomed to the process. Eligible expenses must have been incurred during the plan year, but you have ninety (90) days after the end of the plan year to file your claim.