2026 Dependent Care FSA & Child Care Subsidy

What's Changing in 2026?

Annual Limit Increases - As of January 1, 2026, the 2026 Dependent Care FSA (DCFSA)  limit is increasing from $5,000 per year per household to $7,500 per year for household.

Child Care Subsidy - Dartmouth will again contribute  up to $4,000 per year toward the Child Care Subsidy for those with children ages 0-5. This contribution is made on a per-pay period basis, into a Dependent Care FSA and can be used on eligible day care related expenses.  Employees may make additional pre-tax contributions up to the new $7,500 household limt.  Dartmouth couples are eligible receive one subsidy.

Enrollment - To receive the Child Care Subsidy and/or to contribute your own pre-tax dollars to a DCFSA account, you must make an election in FlexOnline during Open Enrollment.  If eligible, the child care subsidy counts toward the $7,500 annual limit.

Annual DCFSA Contribution Limits

Annual Limit per Household:  $7,500
Married Couples filing separate: $3,750

Household Limit: Be sure to include Dartmouth's child care subsidy contribution, any DCFSA contributions made to/from a former employer and/or any DCFSA contributions made by your spouse to their employer's DCFSA plan as part of your annual household limit.

Eligibility and Enrollment

Eligibility

All benefits-eligible Faculty, Exempt, Non-Exempt and SEIU employees are eligible to contribute.

Research Fellows are not eligible to participate in the DCFSA benefit, but may be eligible to receive a separate child care subsidy for Research Fellows to help offset eligible pre-k child care exepenses.

If you choose to enroll in the DCFSA benefit, please be sure to carefully review all of the IRS guidelines provided below.

Enrollment

During Open Enrollment, or as a new hire, you must elect the DCFSA benefit and enter a contribution amount if you wish receive the Child Care Subsidy and/or contribute pre-tax dollars to a DCFSA.

If you do not elect the DCFSA with Child Care Subsidy during Open Enrollment or as a new hire, you will not be able to receive the Subsidy, or contribute to a DCFSA for the calendar year, unless you experience an IRS defined status change.

You must add your eligible dependent into FlexOnline when you enroll, if they are not already listed in the Family Info section, to receive the Child Care Subsidy.

Understanding Your DCFSA Benefit

Flexible Spending Accounts are strictly regulated by the IRS.  It is your responsibility to read and understand the information provided.  For clarification about information on this webpage, please reach out to the Dartmouth Benefits Office. If you have specific questions around the IRS rules and regulations surrounding your DCFSA plan, you are advised to speak to your tax professional.

For more in-depth information about your plans and how they work, please read the information provided below and review this information from Sentinel.

How a DCFSA works

DCFSA Payroll Deduction - Money comes out of your paycheck each pay period, and goes into your DCFSA Account at Sentinel Benefits, reducing the amount of taxes you pay each pay period.

DCFSA-Child Care Subsidy Contribution - Each pay period, if you have an eligible child, Dartmouth will make a contribution to your DCFSA account.  The amount contributed each pay period is based on the annual subsidy amount, determined by your annual base salary.

DCFSA Account is Funded - Dependent Care accounts are funded through payroll contributions. The amount contributed each pay period by the employee and Dartmouth is available as the funds are deposited.

Incur Eligible DCFSA Expenses - Your dependent will then receive eligible care as determined by the IRS, and the provider will submit an invoice for you to pay.

Pay your Day Care Provider - you may then use your Sentinel Debit card to pay your provider (if VISA is accepted) or you can pay out of pocket and submit a claim to Sentinel Benefits for reimbursement prior to the submission deadline of March 31, 2026.  (Please note: If you are paying Dartmouth College Child Care Center through the Accounts Receivable Office, you will not have the option to use your debit card as Accounts Receivable is not a provider.)

Submit/File a Claim - You will need to supply supporting documentation to Sentinel Benefits for the money that is paid through the Sentinel Benefits debit card, or the funds that you pay out of pocket and request for reimbursement.  Your day care provider does not send copies of your invoices to Sentinel Benefits. See Filing a claim below.

Claims Reimbursement Process - Claims can be submitted in amounts up to the full annual election amount and/or remaining balance. Reimbursement will be made based on your available account balance. If the claim amount is higher than the amount available in the account, additional reimbursement payments will be made to you, as additional funds are added to the account, until the claim has been paid in full. 

Keep your DCFSA Receipts - You will need to keep your DCFSA receipts in case you are ever audited by the IRS, and for the purpose of filing claims to Sentinel for reimbursement. 

DCFSA Deadlines - DCFSAs have filing deadlines regulated by the IRS. Any unclaimed balance remaining in your account at the end of the March 31st run out period will be forfeited.  Please pay careful attention to the Important Filing Deadlines section above.

Who Can You Cover?

• Your qualifying dependent child who is at or under the age 12 at the time the care is provided
• A spouse, or eligible dependent who is over the age of 12 who isn't physically or mentally able to care for themselves and lived with you for more than half the year.

For additional guidelines and a sampling of scenarios, see Who is a Qualifying Person?

Eligible DCFSA Expenses

Child and dependent care expenses must be work related to qualify.  Expenses are work related only if both the following are true:

• They allow you (or your spouse if filing jointly) to work or look for work.
• They are for a qualifying person's care.
• For additional information, see

Qualified dependent care expenses include:

• Child care services
• Nannies
• After-School Programs
• Summer Day Camps
• Adult Day centers for aging parents
• Nursing care for dependents with disabilities
• Care for eligible disabled dependents over the age of 13
• In some cases, you can count work-related payments to relatives who aren't your dependents, even if they live in your home.  However, there are some exceptions, see Payments to Relatives or Dependents
  For a list of the IRS's eligible Dependent Care Expenses, please click here.

Filing a DCFSA Claim

As your funds are deposited into your DCFSA account, you can then claim them for reimbursement from Sentinel Benefits. 

There are three ways to file/submit claims through Sentinel Benefits.

Sentinel Benefits VISA Debit Card - Use the Sentinel Benefits VISA debit card to pay the day care provider at the time of service. Then submit a copy of the receipt and DCFSA claim form (PDF) to Sentinel through Sentinel's online  portal or through the phone app (PDF).  (Please note: If you are paying Dartmouth College Child Care Center through the Accounts Receivable Office, you will not have the option to use your debit card as Accounts Receivable is not a provider.)

Pay out of Pocket - Pay the day care provider out of pocket then submit a copy of the provider's receipt and DCFSA claim form (PDF) to Sentinel after the fact.  Sentinel will reimburse you by check or or via direct deposit (typically within 3-5 business days).

Unpaid Invoice - The IRS does not require that you show proof of payment to receive reimbursement. Send a copy of an unpaid day care provider invoice and DCFSA claim form (PDF) to Sentinel Benefits. Sentinel will reimburse you by way of direct deposit or paper check.  You will then have funds available to pay your day care provider.
The following must be included with your claim submission:

1. Completed DCFSA claim form (PDF), including all claim information. Please note that the provider's Tax ID or Social Security Number is REQUIRED to process the claim.
2. One of the following:

• Cancelled check or receipt from the caregiver detailing date(s) of service, name of the service provider, description of the expense/service, and amount charged; or
• Signature from caregiver certifying care provided.

Having a Life Event?

The IRS does not allow changes to your annual DCFSA contributions outside of open enrollment, unless you have a Dependent Care related qualified life event.  This can consist of stopping or starting services with a day care provider, a dependent is ceases to be eligible for dependent care, you have a change in costs, returning to work after parental leave, or returning to work after adopting a child.  Please notify the Benefits office no more than 30 days after the event has occured, and we will help adjust your contribution amount.

IRS Guidelines

• Changes cannot be made to your annual contribution amount or start/stop an annual contribution to a DCFSA, without an IRS defined status change event. If eligible, changes must be made within 30 days of the event date.  Please contact the Benefits Office if you believe you have had an IRS defined status change event that will allow for a change in your contribution.
• Child and dependent care expenses must be work related to qualify for reimbursement. Expenses are considered work related only if both of the following are true.
  • They allow you (or your spouse if filing jointly) to work or look for work.
  • They are for a qualifying person's care.
• You may NOT contribute to your DCFSA account or receive the Child Care Subsidy while you or a spouse are not working (i.e., leave of absence, hiatus, unemployed, etc.).  Your spouse is treated as "working" during any month that he or she is:
  • A full-time student, or
  • Physically or mentally not able to care for themselves.
  • Your spouse must also live with you for more than half the year.
• You MAY contribute to a DCFSA and receive Child Care Subsidy benefits if you need child care in order to work remotely.
• All DCFSA funds, including the Child Care Subsidy, must be spent within the same calendar year in which they are contributed with the exception of the 2.5 month grace period. Claims must be submitted by March 31 of the following calendar year. Any remaining DCFSA account balance will be forfeited on April 1st. See above for more informatio on DCFSA filing deadlines
• The IRS annual maximum amount you may contribute to a DCFSA, including both the Dartmouth Child Care Subsidy and any pre-tax contributions you choose to make, is $5,000 for individuals or married couples filing jointly ($2,500 for a married person filing separately).
• The IRS holds participants enrolled in a DCFSA responsible for tracking their contribution limits.  If your spouse/partner also is contributing to a Dependent Care FSA through their employer, it is important for you to take into consideration their contributions to ensure your household contributions do not exceed $5,00 annually.
• For additional details on the above IRS guidelines and more, please visit the IRS Publication 503

Child Care Subsidy

Dartmouth will provide a contribution of up to a maximum of $4,000 for eligible employees with legal dependents (ages 0-5) to help offset eligible pre-K child care expenses, such as licensed day care centers, when you elect the Dependent Care Flexible Spending Account (DCFSA) with Child Care Subsidy.

All Dartmouth contributions for the Child Care Subsidy benefit will be deposited into a Dependent Care Flexible Spending Account (DCFSA) at Sentinel Benefits in your name.  All IRS regulations/guidelines surrounding DCFSA contributions will also apply to the child care subsidy contributions that you will receive.

If you wish to receive this benefit in 2026, you MUST elect the DCFSA with Child Care Subsidy during the annual Open Enrollment period, or as a new hire.  If you do not elect the benefit during one of these times, you will not have another opportunity to particpate until the following year, unless you have an IRS defined status change.

Please review the Child Care Subsidy FAQ for more important information about the benefit.

Child Care Subsidy Amounts

The Subsidy is based on your Dartmouth annual salary level determined during Open Enrollment or as a new hire:

Create a Sentinel Account

Set up your account with Sentinel and download the mobile app

1. Go to www.sentinelgroup.com (Chrome and Safari are the recommended browsers)
2. In the "I am an Individual" section, click on GET STARTED
3. From the LOGIN drop down, select "FSA, HSA, HRA, Commuter Accounts"
4. Under NEW USER select "Create your new Username and Password"
5. Enter your personal information.

In addition, you can also upload the Sentinel Accounts App onto your mobile phone for ease in claim monitoring and claim submission.

Year End Information

DCFSA Grace Period

The Dependent Care FSA has a 2.5-month grace period.  A grace period is a timeframe in the new plan year during which you can incur new expenses and file claims. This timeframe is 2½ months after the end of the plan year (January 1st through March 15th). This means that you have until March 15th to incur new expenses and use any remaining monies left in your 2025 DCFSA account to pay them.

Important Filing Deadlines

1/1/27  - Stop using your Sentinel debit card to pay for eligible 2026 incurred DCFSA expenses. After this point, 2026 incurred claims must be submitted manually until the 3/31/27 deadline.

3/15/27 - Last day to incur eligible DCFSA expenses for calendar year 2026. 

3/31/27 - FSA Runout Period Ends - Last day to submit 2026 incurred DCFSA claims to Sentinel for reimbursement. You will still be able to submit 2027 incurred DCFSA claims after this point, but they will be applied toward your 2027 elections.

4/1/27 - No more 2026 incurred claims will be accepted by Sentinel.  Any remaining 2026 balance remaining in the account will be forfeited.

Tax Filing

Your DCFSA contributions will be displayed in box 10 of your annual W-2 Form as pre-tax payroll deductions.  Please be sure to save copies of all receipts submitted to Sentinel, for your records in case you are ever audited.

Leaving Dartmouth

COBRA - Unlike the General-Purpose Health Care FSA, you may not continue your Dependent Care FSA under COBRA. Expenses incurred after the last day of coverage will not be approved. 

Runout Period (Deadline to Submit Claims) - You will still have the runout period through March 31st of the following year to submit your expenses manually through Sentinel.

Submitting for Reimbursement - The process does not change. You will continue to submit expenses to Sentinel using the claim form.

Claim Form - Use this form when submitting DCFSA claims (PDF).

Child Care Subsidy - The subsidy will stop on the last day of the month in which you work.  Since benefits are paid in advance, you will NOT receive a contribution in your last pay check of earned wages

For more information about COBRA benefits, and what to expect when leaving Dartmouth or losing benefit eligibility, please visit our Leaving Dartmouth webpage.