Dependent care
Dependent care FSA deadline and 2026 limit
A dependent care FSA has a bigger limit than people expect and a harsher deadline: $7,500 for a 2026 plan year, no carryover, and a spend deadline that only a grace period can extend.
Last reviewed October 2026. General information for out-of-network therapists, not legal or billing advice. Payer rules change — confirm with the payer before you bill.
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Run a free checkThe limit: $5,000 in 2025, $7,500 from 2026
The dependent care limit is set by statute rather than indexed each year, which is why it stayed at $5,000 for a long time and then changed once. For plan years beginning in 2025 the excludable amount was $5,000; for plan years beginning in 2026 it is $7,500, or $3,750 if you are married filing separately.
The limit is per household, not per employer and not per child: two working parents with two children still share one limit. If your employer offers a dependent care FSA and you also claim the child and dependent care credit, the same expenses cannot be used twice — the credit is reduced by the amount you excluded.
| Plan year begins | Limit | Married filing separately |
|---|---|---|
| 2025 | $5,000 | $2,500 |
| 2026 and later | $7,500 | $3,750 |
No carryover — this is the part people miss
The carryover rule is a health-FSA rule. A dependent care FSA cannot carry an unused balance into the next plan year, and no employer can offer one, because the IRS does not permit it.
So a dependent care FSA is always use-it-or-lose-it at the plan-year end. A grace period is the only thing that can extend the spend deadline, and the plan has to offer it. If your plan has no grace period, the plan-year end is the last day you can incur a dependent care expense and still be reimbursed.
Grace period and run-out, for a dependent care FSA
A grace period of up to 2½ months after the plan year ends lets you incur expenses into the next calendar year. For a plan year ending December 31, 2026 that is March 15, 2027: care provided on that day can still be claimed against the old balance.
A run-out period is separate and only covers claims for care already provided. It is often roughly 60–90 days after the plan-year end in practice — common practice, not an IRS rule, so check your SPD, and it does not let you incur new expenses. A dependent care FSA can have a run-out period whether or not it has a grace period.
If you are unsure which applies, ask your administrator for the plan-year end date, whether a grace period is in force, and the last day a claim can be submitted. The checker on this site shows both scenarios when you answer "not sure".
What a dependent care claim needs
A dependent care claim is not a medical claim, so the documentation is different — and administrators reject a lot of them for the same few reasons:
- The care provider’s name, address and tax identification number (a person, a daycare, a before-school programme, a day camp).
- The name and date of birth of each child or dependent cared for, so the administrator can see they qualify.
- The dates of care and the amount charged, matching a receipt or invoice rather than a summary balance.
- The service is care so you can work — not tuition, not overnight camp, not healthcare.
Who and what qualifies
A qualifying person is a dependent child under 13 whom you claim as a dependent, or a spouse or dependent who is physically or mentally incapable of self-care and lived with you for more than half the year. Care must be provided so that you (and your spouse) can work, look for work or attend school full time.
Overnight camp and tuition for kindergarten and above do not qualify. Day camp does, and so does before- and after-school care. A nanny’s wages can qualify, which usually brings payroll-tax questions that are outside the FSA itself.
Planning around the deadline
Because there is no carryover, the election is a forecast: work out your expected care costs for the plan year, subtract any weeks you will not need care, and elect below the $7,500 cap rather than at it. Under-electing costs you the tax benefit on the difference; over-electing forfeits the excess.
If you change jobs, your dependent care FSA ends with your coverage, and there is no COBRA for it. Submit every claim for care already provided before the run-out closes.
This is general information, not tax or benefits advice. Your plan document (SPD) and your FSA administrator decide what is eligible and when the deadlines fall; the IRS figures above are as of the date on this page — confirm with the payer before you bill.
What the free check catches
- CPT vs. session length (90832 = 16–37 min, 90834 = 38–52, 90837 = 53+, nothing under 16)
- Telehealth POS 02 / 10 vs. POS 11, and modifier 95 pairing
- Diagnosis pointers A–D that don’t resolve to a code on the client
- NPI format and check digit, TIN, member ID, units, signatures
- DOS age against the 60 / 90 day timely-filing warnings
Sources
This is general information, not tax, legal or benefits advice. Your employer's plan document (SPD) and your FSA administrator's rules govern — they may set shorter deadlines, a lower carryover or no carryover. Eligible expenses are determined by your administrator. IRS figures as of Oct 23, 2026; 2027 health FSA limits have not been published yet. Nothing you enter leaves your browser.