Child Care Savings
Employees save 25% to 40% on the cost of daycare for children with an EMPOWER Dependent Care Account.
Employees set aside pre-tax funds to pay for daycare expenses of a dependent child under age 13.
Qualified expenses include nannies, babysitters, housekeepers, nurse’s fees and registration fees to a daycare facility. The cost of pre-K or nursery school, before and after school care and day camp are also eligible.
To qualify, expenses paid for daycare must allow an Employee or the Employee’s spouse (if they are married) to work or look for employment.
The IRS also offers Employees the option of saving for daycare with a credit that the Employee can take on Form 1040.