Dependent care benefits are benefits provided by your employer to help pay for dependent care expenses. These benefits are excluded from your income and are not subject to employment taxes. Deductible benefits are benefits that you pay for with after-tax dollars, and you can deduct the amount you paid for those benefits on your tax return. Excluded benefits are benefits that are not included in your income because they are excluded by law, such as certain types of employer-provided health insurance and dependent care benefits. It is important to note that there are limits to the amount of dependent care benefits that can be excluded from income and deducted from taxes.