Dependent Care Account Works Differently

However, the $5,000 annual maximum for dependent care accounts is set by the tax code, so that figure would act as a maximum for the family (for a married couple filing separately, each could invest up to $2,500). In the case of a divorced couple, the dependent care account would be available only to the parent who is able to claim the child as a dependent for federal income tax purposes. Also, the child care subsidies that some federal agencies offer some employees would be offset against the $5,000 maximum. For example, an employee getting a $1,000 annual subsidy would be able to put only $4,000 into a dependent care FSA.