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Policy Priority
THE TAX CODE

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

Resource

Dependent Care Assistance Program (DCAP): Overview

March 6, 2024

Millions of American families are struggling to find quality, reliable, affordable child care they can depend on. This is having a devastating impact on our youngest learners, working families, and …

Resource

FFYF Capsule Collection: Tax Policy and Child Care

November 30, 2023

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 …

Resource

Side-By-Side: Comparing Tax Bills, 2024

May 14, 2024

The federal tax code contains benefits designed to help working families offset the expense of child care. Unfortunately, these provisions have not been updated in decades. Today, they have not …

latest
updates

News

Two Bipartisan Bills to Address Quality, Affordability of Child Care introduced in Congress

March 30, 2021

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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