How do I estimate my dependent care FSA contributions?

To estimate your future expenses, first review similar expenses you’ve had over the last couple of years. Also consider any changes to your child/adult care needs that you expect may occur during the year. It’s important to carefully estimate your expenses before you decide how much you want to contribute to the dependent care FSA each year. Be conservative in your estimate since you forfeit (lose) any balance that isn’t used by the by the end of the year. On the other hand, if your expenses dramatically exceed the amount you contribute to the FSA, you miss out on some tax savings.