2019 Dependent Care FSA Limit
For 2019, the Dependent Care FSA Limit figures are $5,000 (Exclusion limit) and $2,500 (Exclusion limit, married filing separately).
Effective 2019-01-01Source: Publication 503 (2019), Child and Dependent Care Expenses (IRS)Verified 2026-09-03
Compared with 2018
Every figure on this page is unchanged from 2018.
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Exclusion limit | $5,000 | $5,000 | +$0 (+0.0%) |
| Exclusion limit, married filing separately | $2,500 | $2,500 | +$0 (+0.0%) |
Who it applies to
Employees who participate in a dependent care flexible spending arrangement (FSA) or other employer-sponsored dependent care assistance program under IRS Publication 503.
What changed this year, and why
The maximum amount an employee may exclude from gross income for employer-provided dependent care assistance benefits under a qualified dependent care plan is $5,000 for the 2019 tax year. The same limit applied in 2018.
Common questions
- What is the dependent care FSA exclusion limit?
- The IRS sets the maximum amount an employee can exclude from income through employer-provided dependent care benefits at $5,000 for 2019. This applies to dependent care flexible spending arrangements (FSAs) and other qualified employer plans.
- Did the limit change from 2018 to 2019?
- No. The exclusion limit remained $5,000 from 2018 to 2019.
What counts as a dependent care benefit
The IRS defines three categories of dependent care benefits. The first is amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you work. The second is the fair market value of care in a daycare facility provided or sponsored by your employer. The third is pre-tax contributions you made under a dependent care flexible spending arrangement. Even if your salary was reduced to pay for these benefits, they still count as dependent care benefits. If you received benefits as an employee, they are reported on your Form W-2. If you received benefits as a partner, they are shown on your Schedule K-1. You enter the total amount of these benefits on Form 2441 to determine how much you can exclude from your income. These benefits may be excludable from your income if your employer provides them under a qualified plan, but the exclusion is subject to dollar limits.
Dependent care benefits in- clude: 1. Amounts your employer paid directly to either you or your care provider for the care of your qualifying per- son while you work, 2. The fair market value of care in a daycare facility pro- vided or sponsored by your employer, and 3. Pre-tax contributions you made under a dependent care flexible spending arrangement.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
Your exclusion is the smallest of five amounts
The amount you can exclude or deduct from your income for dependent care benefits is limited to the smallest of five specific amounts. These five limits are: (1) the total amount of dependent care benefits you received during the year, (2) the total amount of qualified expenses you incurred during the year, (3) your earned income, (4) your spouse's earned income, or (5) $5,000 ($2,500 if married filing separately). The definition of earned income for the exclusion or deduction is the same as the definition used when figuring the credit, except that earned income for the exclusion or deduction doesn't include any dependent care benefits you receive. You can choose to include your nontaxable combat pay in earned income when figuring your exclusion or deduction, even if you choose not to include it in earned income for the earned income credit or the credit for child and dependent care expenses.
The amount you can exclude or deduct is limited to the smallest of: 1. The total amount of dependent care benefits you re- ceived during the year, 2. The total amount of qualified expenses you incurred during the year, 3. Your earned income, 4. Your spouse's earned income; or 5. $5,000 ($2,500 if married filing separately).
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
A spouse with no earned income can wipe out the benefit
The earned income limit restricts the amount of work-related expenses you can use to figure your child and dependent care credit. If you are single at the end of the year, your work-related expenses can't be more than your earned income for the year. If you are married at the end of the year, your work-related expenses can't be more than the smaller of your or your spouse's earned income for the year. For purposes of this married limit, you use your spouse's earned income for the entire year, even if you were married for only part of the year. If you are legally separated or married and living apart from your spouse, you aren't considered married for purposes of the earned income limit, so you use only your income. If your spouse died during the year and you file a joint return as a surviving spouse, you may, but aren't required to, take into account the earned income of your spouse who died during the year. Community property laws are disregarded when figuring earned income for this credit.
Earned Income Limit The amount of work related expenses you use to figure your credit can't be more than: 1. Your earned income for the year if you are single at the end of the year, or 2. The smaller of your or your spouse's earned income for the year if you are married at the end of the year.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
Which child or adult the care has to be for
The Qualifying Person Test requires that the care must be for one or more qualifying persons who are identified on Form 2441. A qualifying person is defined as one of three categories. First, your qualifying child who is your dependent and who was under age 13 when the care was provided. Second, your spouse who wasn't physically or mentally able to care for himself or herself and lived with you for more than half the year. Third, a person who wasn't physically or mentally able to care for himself or herself, lived with you for more than half the year, and either was your dependent or would have been your dependent except for certain income or filing status requirements. Your child and dependent care expenses must be for the care of one or more of these qualifying persons to be eligible for the credit or exclusion.
Qualifying Person Test. The care must be for one or more qualifying persons who are identified on Form 2441. (See Who Is a Qualifying Person, later)
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
Using the FSA shrinks the dependent care credit
If you exclude dependent care benefits from your income, the amount of the excluded benefits has two important effects on your dependent care credit. First, the excluded benefits aren't included in your work-related expenses when figuring your credit. Second, the excluded benefits reduce the dollar limit that applies to your qualifying expenses. This means that the more you exclude through your employer's dependent care plan, the less you may be able to claim as a credit. The dollar limit for qualifying expenses varies depending on how many qualifying persons were cared for. However, if two or more qualifying persons were cared for, the amount you exclude or deduct will always be less than the dollar limit because the total amount you can exclude or deduct is limited to $5,000.
Effect of exclusion on credit. If you exclude dependent care benefits from your income, the amount of the exclu- ded benefits: 1. Isn't included in your work related expenses; and 2. Reduces the dollar limit, discussed later.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
The statement your employer must give you, and going over the cap
Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. This means that if your dependent care benefits exceed $5,000, the excess amount is treated as taxable wages and subject to income tax and employment taxes. The amount shown in box 10 represents the total benefits you received, including both the excludable amount up to $5,000 and any excess that was included in your taxable wages. You must report the amount of these benefits on Form 2441, Part III, to determine how much of your dependent care benefits you can exclude from your income.
Statement for employee. Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
Care paid for late does not count toward the limit in the year the care happened
Under IRS rules for 2019, dependent care expenses count toward the exclusion limit in the year you actually pay for them, not the year the care was provided. If you had care expenses in 2018 but did not pay them until 2019, those payments are treated as 2018 expenses and cannot be counted as 2019 work-related expenses for the credit or exclusion. You may be able to claim an additional credit for them separately on your 2019 return. Similarly, if you had expenses in 2019 that you did not pay until 2020, you cannot count them when figuring your 2019 credit, though you may be able to claim them on your 2020 return. This means the timing of payment, not the timing of care, determines which year's $5,000 exclusion limit applies.
Expenses not paid until the following year. Don't count 2018 expenses that you paid in 2019 as work rela- ted expenses for 2019. You may be able to claim an addi- tional credit for them on your 2019 return, but you must figure it separately. See Payments for prior-year's expen- ses under Amount of Credit, later. If you had expenses in 2019 that you didn't pay until 2020, you can't count them when figuring your 2019 credit. You may be able to claim a credit for them on your 2020 return.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
The exclusion is claimed on the same form as the credit, in a different part
For 2019, taxpayers who received dependent care benefits through their employer must use Form 2441 to claim the exclusion from income. The exclusion is reported in Part III of Form 2441, which is the same form used to calculate the child and dependent care credit - but in a different part of the form. Self-employed individuals who receive benefits from a qualified dependent care benefit plan are treated as both employer and employee, so they receive a deduction rather than an exclusion from wages. They also use Form 2441 to claim that deduction. The amount that can be excluded is limited to the smallest of the total benefits received, the qualified expenses incurred, or the taxpayer's earned income, subject to the $5,000 exclusion limit.
Exclusion or deduction. If your employer provides de- pendent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Your employer can tell you whether your benefit plan qualifies. To claim the exclusion, you must complete Part III of Form 2441.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 503 (2019), Child and Dependent Care Expenses (IRS)
- Exclusion limit
the total amount you can exclude or deduct is limited to $5,000.
- Exclusion limit, married filing separately
5. $5,000 ($2,500 if married filing separately).