Flexible Spending Accounts
Dependent Care Assistance Plan (DCAP)
The State of Illinois Dependent Care Assistance Plan allows you to set aside up to $416.66/month ($555.54/month for University employees paid over 9 months), tax free, for eligible dependent care expenses. You can use this plan to cover the cost of the following:
- Day care centers
- Nursery schools
- Before-school care
- After-school care
- Housekeepers who also care for children
- Adult day care facilities
- Adult in-home day care
The amount you choose is deducted from each paycheck and set aside in your DCAP account. This amount is not subject to State, Federal or Social Security withholdings. Since this amount does not appear on your W-2 form as taxable income, your taxes are reduced, and you have more spendable income.
When making your contribution decision, follow these guidelines:
- Minimum contribution is $20 per month.
- Maximum contribution is $416.66 per month ($555.54/month for University employees paid over 9 months), dependent on your tax filing status. (Please see the State of Illinois Flexible Spending Account Program booklet for information on the IRS maximum contribution to the DCAP.)
- Carefully consider the amount that you contribute to the FSA for the plan year. IRS regulations state that any unused funds that remain in your FSA at the end of the plan year, after all reimbursable requests have been submitted and processed, cannot be returned to you or carried forward to the next plan year.
Details on the DCAP program can be found in the State of Illinois Flexible Spending Account Program booklet.