A Dependent Care Assistance Program (DCAP) is a flexible spending account that your employer may offer 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.
Under a DCAP plan, you can set aside up to $5,000 of your annual income to help cover the cost of:
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.
Click here to learn more about how participation in this program can save you money.
