Benefits Changes for 2026

Dependent Care Flexible Spending Account​ (FSA)

A Dependent Care FSA is a pre-tax benefit account used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or adult daycare. 

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What’s Changing for 2026?

The maximum annual contribution is $7,500

 

Action Required: Re-Elect Your Dependent Care FSA for 2026

To continue participation in 2026, you must re-elect the benefit in ADP during Open Enrollment. Current elections will not carry over.

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Key Details:

• This is a “use it or lose it” account. Funds must be used for 2026 plan year expenses by March 31, 2027, or they will be forfeited.

• 2026 Maximum annual contribution: $7,500

• Maximum per pay period contribution: $288.46

• Minimum per pay period contribution: $50

• If you are married and your spouse also participates in a Dependent Care FSA, your combined contribution cannot exceed $7,500.

• If you and your spouse file separately, each may contribute up to $3,750.

 

Eligible Dependents

You can claim expenses for:

• A child under age 13 whom you claim as a dependent for federal tax purposes

• A spouse or domestic partner who is physically or mentally unable to care for themselves and lives with you for more than half the year

• Any other person who meets the same criteria and qualifies as your dependent for federal tax purposes

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What Does It Cover?

• Childcare center, babysitter, nanny (birth through age 12) *

• Licensed dependent day care centers

• Before – or after-school care

• Summer day camp

• Disabled dependent and/or spouse care

• Elder care

* Claims must include the caregiver’s name, address, phone number, and Social Security or Tax ID number.

 

View an interactive eligible expenses list at: Eligible Expenses | Benefits | WEX Inc.

 

Considerations Before Enrolling

• Do you have regular child or adult day care expenses?

• Will you pay for after-school care or summer camp?

• Will you pay nursery school tuition?

• Is the Dependent Care FSA more beneficial than the federal tax credit for your situation?

 

Your personal circumstances may affect which option is better. Consider consulting a tax advisor before enrolling.

 

For a full list of eligible expenses, visit the IRS website at www.irs.gov.