What are the tax rules for a dependent care FSA versus a health FSA?

Both let you set aside pre-tax dollars, avoiding federal income and usually FICA taxes, but they cover different things. A health FSA pays for medical, dental, and vision costs and has an annual contribution limit set by the IRS; it's use-it-or-lose-it, though plans may allow a small carryover or grace period. A dependent care FSA (DCFSA) pays for daycare, preschool, and after-school care so you can work, with its own separate, larger limit and no carryover. You can have both at once since they don't overlap. A key coordination point: money run through a DCFSA reduces the expenses eligible for the Child and Dependent Care Credit, so run the numbers to see which saves more.