A Dependent Care FSA (DCFSA) is an employer-sponsored benefit that helps employees manage expenses associated with caring for a qualified dependent, such as a child or incapacitated family member. It is a flexible spending account (FSA) that allows employees to set aside pre-tax dollars from their paycheck to pay for eligible dependent care expenses. The funds can be used to pay for childcare or adult dependent care expenses that are necessary to allow the employee and their spouse, if married, to work, look for work, or attend school full-time. Eligible expenses may include daycare, nursery school, preschool, after-school care, and transportation services. However, if the employee did not find a job and has no earned income for the year, their dependent care costs are not eligible. The maximum amount that can be contributed to a DCFSA is set by the IRS and may vary from year to year. It is important to note that a DCFSA is a "use it or lose it" account, meaning that any unused funds at the end of the plan year are forfeited.