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.
The program provides reimbursements for up to $2,500 annually ($5,000 for married couples) 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.
DCAP helps parents afford child care by offseting the costs of going to work and providing for their families. It is critical that Congress expand this tax provision to support businesses and parents.
Top
Resources
FFYF Capsule Collection: Tax Policy and Child Care
Millions of American families today are struggling to find the affordable, reliable, quality child care they depend on to go to work. This has a devastating impact on our youngest …
The First Five Things To Know About: The Federal Tax Code and Child Care
Millions of American families are struggling to find the affordable, reliable, quality child care they depend on to go to work. This has a devastating impact on our youngest learners, …
Federal Tax Provisions That Support Child Care
American families depend on affordable, reliable, quality child care to go to work – but this care is often hard to find and too costly. These challenges have a tremendous …
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Two Bipartisan Bills to Address Quality, Affordability of Child Care introduced in Congress
Last week, Iowa’s Congressional leaders introduced two bipartisan bills, the ACCESS Act and the Improving Child Care for Working Families Act, to address the quality and affordability of child care. …
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about DCAP
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