You're already paying for a parent's care. A good chunk of it can be pre-tax.
If you help support a parent, US benefits let you cover a real slice of their care with pre-tax dollars, which can hand back close to a third of what you spend. Most caregivers never claim it, because open-enrollment forms are written for daycare and dental, not for looking after a parent. This report runs your household and shows you exactly which accounts to fund, and what you'll save.
The savings are real. Most caregivers just never see them.
Your $5,000 care account isn't only for daycare.
Most people think a Dependent Care FSA is just for kids. IRS Publication 503 is clear that a parent you help support, who cannot look after themselves, can count too, as long as the care lets you work. That is up to $5,000 a year of a parent's care, paid pre-tax. HR rarely raises the parent case at enrollment.
ABLE can be powerful, if the timing fits.
ABLE accounts grow tax-free and don't count against benefits like SSI, which makes them the strongest shelter of all when they apply. But the disability has to have started before a set age (26, rising to 46 in 2026). A parent diagnosed at 71 doesn't qualify. We test this honestly so you don't waste an enrollment slot.
Your Medical FSA can cover a parent's Medicare costs.
A parent you claim as a dependent counts here too. Their Medicare Part B premiums, prescription co-pays, dental work and equipment can all be reimbursed from your Medical FSA, pre-tax, up to $3,200 a year. Almost no benefits booklet spells out that a dependent parent is included.
The big tax deduction is usually a mirage.
Many caregivers assume the medical deduction on Schedule A will catch their spending. It only counts the part above 7.5% of your income, which for most households means it does nothing at all. Your report tells you when it's a real lever and when it isn't, so you stop banking on it.
Exactly what lands in your inbox.
Real numbers and a real household: a working caregiver supporting a parent with dementia.
Your household and bracket
| Filer | Sample employee, full-time W-2 |
|---|---|
| Filing status | Married filing jointly (MFJ) |
| Household income | $185,000 combined wages |
| Federal marginal bracket (2026) | 24%, MFJ $206,700 ceiling |
| FICA on FSA contributions | 6.20% OASDI + 1.45% Medicare = 7.65% |
| Combined saving rate (Fed + FICA) | 24% + 7.65% = 31.65% |
| Person you support | Filer's parent, age 71, mid-stage dementia |
| Dependent status §152(d) | Qualifying relative (income under $5,200, over 50% support) |
| Disability onset | Age 71, after 26 (relevant to the ABLE test below) |
Account A: Dependent Care FSA
ELIGIBLEFunded through payroll, pre-tax. Under IRS Publication 503 and IRC §21, a parent who cannot self-care and whom you support counts as a qualifying person, as long as the care lets you (and your spouse) work or look for work. In-home aide hours qualify.
| Household cap (MFJ) | per household, not per dependent | $5,000.00 |
| Elected for plan year | recommend max | $5,000.00 |
| Federal income tax avoided | $5,000 × 24% | $1,200.00 |
| FICA avoided (employee share) | $5,000 × 7.65% | $382.50 |
| Care FSA saved in year one | $1,582.50 | |
Note: the care FSA and the Dependent Care Credit (Form 2441) are coordinated, so you can't claim the same dollar twice. At the 24% MFJ bracket the FSA almost always wins.
Account B: ABLE account (IRC §529A)
NOT ELIGIBLEABLE accounts let a person with a qualifying disability hold up to $100,000 without losing SSI, and grow contributions tax-free for disability expenses. The disability must have started before age 26 (raised to age 46 from 2026). Onset at age 71 falls outside both windows, so this account is closed for this dependent.
| Age at onset of qualifying condition | 71 | FAIL |
| Required onset (pre-2026 rule) | before age 26 | n/a |
| Required onset (2026 expansion) | before age 46 | n/a |
| Annual contribution cap (if eligible) | $18,000 plus ABLE-to-Work | n/a |
| ABLE saved in year one | $0.00 | |
We document this honestly: the test fails for this dependent. If your dependent's condition began before 26, this would usually be the largest saving on the report by a wide margin.
Account C: Medical FSA
ELIGIBLEA Medical FSA reimburses qualified medical costs under IRC §213(d) for you, your spouse, and your tax dependents, including a parent you claim. Medicare Part B and D premiums, co-pays, dental work and equipment for the parent all reimburse. The 2026 cap is per employee, not per dependent.
| 2026 employee cap | per IRS Rev. Proc. | $3,200.00 |
| Projected qualifying spend | premiums + co-pays + equipment | $3,200.00 |
| Federal income tax avoided | $3,200 × 24% | $768.00 |
| FICA avoided (employee share) | $3,200 × 7.65% | $244.80 |
| Medical FSA saved in year one | $1,012.80 | |
Account D: Schedule A medical deduction (for reference)
BELOW FLOORThe Schedule A medical deduction lets you deduct unreimbursed medical costs, but only the part above 7.5% of your income. On a $185k income that floor is $13,875, and the household's spend after the FSAs is well below it, so this contributes nothing this year. We show it so you don't assume it will.
| AGI | filed jointly | $185,000 |
| 7.5% of AGI floor | $185,000 × 7.5% | $13,875 |
| Out-of-pocket medical (after FSA) | projected | $4,200 |
| Deductible amount above floor | max(0, $4,200 − $13,875) | $0 |
| Schedule A saved in year one | $0.00 | |
Your total, and what to elect
| Account | Elect | Eligibility | Tax saved |
|---|---|---|---|
| Dependent Care FSA, parent in-home care | $5,000 | Eligible (Pub. 503) | $1,582.50 |
| ABLE account (IRC §529A) | none | Not eligible (onset over 26) | $0.00 |
| Medical FSA, dependent parent spend | $3,200 | Eligible (§213(d)) | $1,012.80 |
| Schedule A medical deduction | none | Below 7.5% floor | $0.00 |
| Total saved in year one (Fed + FICA) | $2,599.30 | ||
That is real cash back, from ticking two boxes on the open-enrollment form. The same household at the 32% bracket would save closer to $3,150. Your report runs your actual bracket and your actual dependent.
That is your actual deliverable: six tight pages, with your own household plugged in.
Get my savings report · $14One report. Four eligibility tests. Checked in order.
IRS Pub. 503, IRC §21. Covers care for a parent who cannot self-care, while you and your spouse work or look for work. In-home aide hours and adult day care qualify. Half the cap per spouse if you file separately.
The disability must have started before age 26 (rising to 46 in 2026). Then it offers a $18,000 a year cap, $100,000 protected from SSI, and tax-free growth. The strongest shelter when eligibility holds, and closed when it doesn't.
IRC §213(d). Reimburses qualified medical costs for you, your spouse, and your tax dependents, including a parent you claim. Medicare premiums, dental, prescriptions, equipment. Use-it-or-lose-it, with the usual carryover rules.
Three steps to your open-enrollment answer.
Answer nine questions
Your household, your bracket, and the parent you support. Each one is written in plain language, no jargon.
We check every account
Each one tested against your real facts, with the rule written out beside the result, so you can trust it.
You get your PDF
Six pages in minutes: your total saving, and the exact boxes to tick before open enrollment closes.
One report. Fourteen dollars.
Answer nine plain-language questions about your household, your bracket, and the parent you support. We send back a six-page report: every account tested against your real facts, your total saving stacked, and the exact elections to make at open enrollment. If your first pass on the questions was off, re-run it free for 30 days.
- Whether a parent qualifies for your care FSA
- Whether an ABLE account is open to you
- What your Medical FSA can reimburse
- Whether Schedule A is worth anything for you
- Re-runs free for 30 days