How does it work?

You save money to pay for your out-of-pocket healthcare expenses, including prescription drug costs, medical, dental, vision and hearing expenses and/or your child or dependent care expenses, including day care, and before- and after-school care expenses.

  • You decide how much you want to deduct from your paycheck before federal, state or Medicare taxes are calculated.
  • You reimburse yourself from the account as you pay for eligible health care or dependent care expenses.

You save money by reducing your taxable income. It is that simple.

City of Dallas employees have two FSA options:

1Employee Medical Spending FSA 2Dependent Care FSA

Employee Medical Spending FSA

What can you pay for with an Employee Medical Spending FSA?

You can find a list of eligible expenses at or see your benefit plan information.

Some sample expenses are:

  • Your share of health plan expenses, such as deductibles and copayments (insurance premiums do not qualify)
  • Eyeglasses and contact lenses
  • Dental work, orthodontia and dentures

You can no longer use your Employee Medical Spending FSA for over-the-counter (OTC) medicines or drugs without a prescription. This change was part of the Affordable Care Act passed in 2010.

The maximum annual contribution to your Employee Medical Spending FSA is $2,500.

Dependent Care FSA

You can use your Dependent Care FSA to pay for:

  • Daycare services for children under age 13
  • Care for other qualifying dependents who are unable to care for themselves

Dependent Care FSA is for dependent daycare only. It is not to be confused with dependents' health care expenses, which should be considered in your calculation of your Employee Medical Spending FSA contributions.

The maximum annual contribution to your Dependent Care FSA is $5,000.

See the FSA Video for more information.