Set aside pre-tax dollars from your paycheck to reimburse yourself for qualifying expenses of dependents.
Some of these may include:
- After-school care
- Extended day programs
- Babysitter inside/outside of household
- Summer day camp (no overnight)
The Internal Revenue Code sets forth the amount you can contribute to your account each year.
- Allot up to $5,000 per tax year
- Allocate up to $2,500 (if married and filing a separate return)