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A Dependent Care Spending Account is an optional and potentially
valuable benefit that can help ease the impact of your work-related
dependent care expenses by lowering your taxable income. It’s
ideal for people who, in order to work, must pay for daily care
– at home, in a day care center, or nursery!
 Federal
tax laws allow you to reduce your taxes if you pay someone to care
for your child or other dependent so that you may work. You may
reduce your taxes by (1) participating in a Dependent Care Flexible
Spending Account through your employer’s flexible benefits
plan, (2) using the Federal Dependent Care Tax Credit, or (3) using
a combination of both methods. The amount you save on taxes will
vary depending on the method you use, your salary, your expenses,
and your tax status.
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