Dependent Care Assistance Plan (DCAP) and 2026 Federal Benefits Open Season
Hey, working parents! Does your employer offer a Dependent Care Assistance Plan (DCAP), also known as a Dependent Care Flexible Spending Account?
It’s time to find out!
What is DCAP?
DCAP lets eligible working parents set aside pre-tax income to pay for qualifying child care expenses, keeping more of their hard-earned money in their pockets. Think of it as a health FSA, but for child care!
What’s New
In 2025, the three primary child care tax credits were all expanded for the first time in decades to help make child care more affordable for working families with young children. This included:
- The Child and Dependent Care Tax Credit (CDCTC), the only tax credit that specifically helps working parents offset the cost of child care;
- The Employer-Provided Child Care Credit (45F), which supports businesses who want to help locate or provide child care for their employees;
- And the Dependent Care Assistance Plans (DCAP), flexible spending accounts that allow working parents to set aside pre-tax dollars to pay for child care expenses (last updated in 1986).
Parents with access to DCAP are now able contribute up to:
- $7,500 per year if you’re single, head of household, or married filing jointly.
- $3,750 per year if you’re married filing separately.
What To Do
First, check with your employer to see if they offer DCAP.
Second, enroll! The 2026 Federal Benefits Open Season to either enroll or change your contribution level runs from November 9 through December 14, 2026.
Third, use these funds to offset some of your child care costs!
Learn more here!
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