Dependent Care Flexible Spending Accounts (DCFSA) are tax-advantaged accounts that let you use tax-free money to pay for eligible dependent care expenses. Millions of Americans use a DCFSA to help defray the cost of child and elder care while they work, look for work, or attend school full time.

You can contribute up to the IRS limit per household each year to your DCFSA. Check this page for the current contribution limits.

Here are six common ways you can use your DCFSA to save money:

#1 Babysitter or nanny

The cost of hiring a babysitter or nanny so that you (and your spouse, if applicable) can work is an eligible DCFSA expense. The caregiver can be anyone, including a relative, as long as they aren't your spouse or a dependent you claim on your taxes.

Keep in mind that if you pay a babysitter or nanny more than $2,700 per year, they may be considered household employees, which requires additional tax filings.

#2 Child daycare, nursery school, and preschool

Daycare, nursery school, and preschool costs are eligible DCFSA expenses if the care is provided for a qualifying dependent under the age of 13 so that you can work or look for work.

Note that tuition for kindergarten and above is ineligible.

#3 Before and after school programs

Before and after school programs that provide care for qualifying dependents under 13 so you can work are eligible DCFSA expenses. This includes after-school programs, extended day programs, and similar care arrangements.

#4 Registration and/or payment processing fees

Many daycare providers charge registration fees or payment processing fees. These fees are eligible DCFSA expenses as long as they are directly related to the dependent care services.

#5 Summer day camp

Summer day camp expenses for children under 13 are eligible DCFSA expenses. However, overnight camps are not eligible. The camp must be primarily for custodial care, not education.

#6 Elder daycare

If you have a spouse or dependent who is physically or mentally incapable of self-care, lives with you for at least eight hours a day, and you are paying for their care to enable you to work, those costs may be eligible DCFSA expenses.

Elder daycare programs provide supervised activities and care during the day for elderly adults who need assistance or supervision.

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