Dependent Care Assistance Programs (DCAPs) are employer-sponsored benefits that help employees manage expenses associated with caring for qualified dependents. These programs either provide dependent care services directly or reimburse employees for eligible expenses.

For the 2024 tax year, the maximum exclusion from wages for a DCAP remains at $5,000 ($2,500 if married filing separately).

The IRS issued a news release last week encouraging taxpayers to get an Identity Protection Personal Identification Number (IP PIN) for the 2025 tax season.

Why an IP PIN?

An IP PIN is a crucial layer of protection against tax-related identity theft. An IP PIN is a six-digit number that is known only to the taxpayer and the IRS. The IRS uses this number to confirm the taxpayer's identity when they file their federal tax return.  Using an IP PIN prevents someone other than the taxpayer from using the taxpayer's Social Security number or Individual Taxpayer Identification Number (ITIN) to file a return.