Daycare Moms - Dependent Care FSA Question

How does this work? Is it worth it? I have no clue about these things and DHs company has open enrollment for this and the HSA.

Re: Daycare Moms - Dependent Care FSA Question

It is tax-free money to use towards dependent care. We use it to pay for pre-school for DD. I believe that both parents need to have income in order to qualify for the tax break.

I was confused because I thought that it worked like the FSA money, where it was fully funded at the beginning of the year, but our program is only funded as the deductions come out of our paychecks.

You just submit receipts and the money is refunded to you via direct debit. Definitely worth it if you know you will use the money during the year.

Re: Daycare Moms - Dependent Care FSA Question

yes totally worth it, saves us about 2k per year!

Daycare Moms - Dependent Care FSA Question

I have the full $5,000 deducted from my paycheck. Each month at the end of the month I submit a form to the company for the amount I spent on day care. My day care has to sign a form saying they prepared the care and attach a receipt. Then I get a check back from the company. Basically it is using money that is pretax instead of taking money that you already paid tax on to pay for the day care

Daycare Moms - Dependent Care FSA Question

I get the full $5K taken out of my check. I submit a form every $1K. so 5x a year. We cannot get reimbursed until the money is actually accrued in the account.

I spend way more than $5K a year but hey i'll take any tax free money I can get.

Daycare Moms - Dependent Care FSA Question

we use the dependant care FSA and love it. if both parents work, you can set aside up to $5K per year for childcare expenses. the total amount you contribute for the year is broken up equally over each paycheck and taken out pre-taxes. as the money accummulates in your FSA account, you submit a request for reimbursement after services are rendered (you would submit a request for childcare services for the month of Jan on Feb 1st). depending on the company, you could need a receipt (mine does). i just fill out the form online, take a pic of the receipt and submit. money comes direct deposit in about 5 days. you cannot roll over the money, use it or lose it.

Re: Daycare Moms - Dependent Care FSA Question

I have been getting the dependent care deducted from my account for the last year. I was surprised at how easy it is.

My only question is can both spouses get the $5k deducted? Or is it only 1 or the other?

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Re: Daycare Moms - Dependent Care FSA Question

I will be doing it for the first time this year (it's our first year with day care).

Daycare Moms - Dependent Care FSA Question

I do this for medical expenses already. We will be adding the dependent care this year. I will have the full $5,000 taken out of my check, this way the money will accrue faster. You only get reimbursed after money is already in your account.

The way we estimate, we will save about $2000 on daycare

Daycare Moms - Dependent Care FSA Question

I was told by my accountant that unless you make less than 40k you save more in taxes this way.

Daycare Moms - Dependent Care FSA Question

Ok, I think we're going to take the plunge. The whole use it or lose it concept scares me, but that daycare bill isn't going anywhere. And it surely isn't getting any cheaper.

Re: Daycare Moms - Dependent Care FSA Question

YES it is worth it!!!!!!!! They take up to $5k (in my case) tax free to pay for daycare expenses. I only wish they would do more. $5k takes me only up to 3.5 months!

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Re: Daycare Moms - Dependent Care FSA Question

Re: Daycare Moms - Dependent Care FSA Question

I am glad someone posted this because I have to make my elections soon and no idea what to do about this..... so here is my question (and please note I am so so bad when it comes to stuff like this)

At the end of the year can you still write off a certain amount (I think its around 3k?) from your taxes if have this money taken out?... because obviously not all the expense will be covered with this FSA