Dependent Care
A Dependent Care Assistance Program (DCAP) is a flexible spending
account that your employer offers to help you pay for your child
or dependent care expenses. It is much like the account that you may
already use to pay for some of your out-of-pocket health care expenses.
How a DCAP works
Under a DCAP plan, you can set aside up to $5,000 of your annual
income to help cover the cost of:
• child care,
• elder care, or
• care for a disabled spouse or disabled dependent.
Your salary is reduced each pay period by the amount you designate and
this amount is returned to you in the form of a tax-free reimbursement for
child and dependent care expenses.

