{"id":26658,"date":"2021-02-19T11:59:38","date_gmt":"2021-02-19T16:59:38","guid":{"rendered":"https:\/\/gtm.com\/household\/?p=26658"},"modified":"2021-02-19T11:59:38","modified_gmt":"2021-02-19T16:59:38","slug":"dcap-flexibility","status":"publish","type":"post","link":"https:\/\/gtm.com\/household\/dcap-flexibility\/","title":{"rendered":"New Law Provides More Flexibility for Dependent Care Assistance Programs"},"content":{"rendered":"
\"dcap-flexibility\"

Through a new law, families may now have more flexibility in how they use funds in their Dependent Care Assistance Programs. DCAPs can be used to help offset the wages paid to a nanny. The IRS provides more guidelines on DCAP flexibility.<\/p><\/div>\n

The Internal Revenue Service has provided greater flexibility, due to the pandemic, to employee benefit plans offering dependent care assistance programs (DCAP). A family can use funds in their DCAP to help offset the wages paid to their nanny<\/a>.<\/p>\n

Under the COVID-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, your employer now has additional discretion in 2021 and 2022 to adjust their programs to better meet the unanticipated childcare consequences of the public health emergency.<\/p>\n

As a result of COVID-19, you may be more likely to have unused funds in your DCAP at the end of 2020 and 2021.<\/p>\n

Generally, under these plans, your employer allows you to set aside a certain amount of pre-tax wages to pay for dependent care expenses like wages paid to a nanny. Amounts you spend are then reimbursed from your designated DCAP.<\/p>\n

Your employer now can:<\/p>\n