Dependent Care Assistance Program
Overview
The Dependent Care Assistance Program (DCAP) is an employee benefit plan – or a flexible spending plan – that helps employees pay for the care of a qualifying dependent. DCAP helps parents afford child care by offsetting the costs of going to work and providing for their families.
In July of 2025, the program was expanded to allow families to put more pre-tax earnings away to pay for child care. DCAP provides reimbursements for up to $7,500 annually ($3,750 each for married couples filing separately) to employees who pay for dependent care. Employees are then allowed to deduct these dependent care expenses from their paycheck on a pre-tax basis, which can include an employer contribution.
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about DCAP
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