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Dependent Care Account. This account reimburses you for expenses associated. with the care of your children or other dependents while. you (and your spouse) work or attend school full-time. The. maximum annual amount allowed for this plan is $5,000. or $2,500 for married taxpayers filing separate returns.
The money reimbursed through a Dependent Care Flexible Spending Account will reduce the amount of eligible expenses you can use for the tax credit on a dollar-for-dollar basis. Tax savings with a Dependent Care Flexible Spending Account become more valuable as your income increases. Generally, if your family's adjusted gross income is less than $39,000 a year, it's best for you to take the tax credit rather than participating in the DCA.