Dependent Care FSA Accounts???

Does anyone do this for their children in preschool, camp or daycare? I am thinking of doing this next year when I have both kids in fulltime school and I will need the care and it might save me money.
How does it actually work-do I put money in an account and then I get a check but at the same time the money is minused from that account?
Thanks :)

Re: Dependent Care FSA Accounts???

I do it for my son's daycare costs. I'm not sure if all work the same but here is how mine works. I pay daycare on a monthly basis out of my own pocket. Concurrently, my employer deducts before-tax money from my paycheck for a maxmum of $5,000 per year. Each month I submit my daycare receipts to Aetna (the provider) and they send me my own money back via a check. However, they only send you a maximum of how much money you have in the account. For example, my january costs were $825. Since they only deduct $192 per paycheck ($5,000 divided by 26 paychecks per year) Aetna only pays me for what I've contributed. And each time another contribution is made they send me another check. SO I just keep submitting the receipts and eventually I'll get the full $5,000 back. They also sent me a credit card to use so I'm not sure how that works. Maybe they allow you to accumulate the costs and then work the balance down. IDK, not sure if that would make sense.

But as far as the benefits go, it is really a tax thing. DH and I don't qualify to deduct our daycare expenses on our tax returns because our income exceeds the amount before it is fully phased out. So this way I am getting the benefit anyway of having it deducted pretax. I believe that if you decide to do an FSA you can't deduct from your tax return because it is like double-dipping. Make sense? FM if you have other questions.

Re: Dependent Care FSA Accounts???

Thanks so much!