The Dependent Care Flexible Spending Account Expansion Act

This bill increases the maximum annual amount workers can set aside tax-free through dependent care flexible spending accounts (FSAs) from $5,000 to $7,500 (or $2,500 to $3,750 for married taxpayers filing separately). It directly affects working parents and caregivers who use FSAs to cover eligible expenses like childcare or elder care. The change modifies the Internal Revenue Code to allow higher pre-tax contributions, reducing taxable income for eligible employees. The new limits apply to tax years beginning after December 31, 2024.