Dependent Care FSA

Hi everyone. I will be starting a new job this summer and I am starting the onboarding process and have no idea how some of these tax things work.

My job has an option where I can enroll in a dependent care FSA with a maximum annual amount of $5,000. There is an option where I can write how much I’d like to contribute per paycheck.

As far as I understand, a dependent care FSA allows me to set aside pre-tax dollars to pay for eligible childcare expenses such as daycare (which my kid will need to attend). Based on my calculations, day care will cost around $1,200 per month but I will be splitting this 50/50 with my spouse.

Anyone have any insight into what I should do or if it’s even a good idea? I’m honestly not even sure and I am horrible with finances and tax stuff but I want to learn more and make the right choice for my family.

Feel free to DM me as well!