Dependent Care FSA question --

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bpmom
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Dependent Care FSA question --

If you pre-pay your child's pre-school tuition in the fall, how do you account for the FSA for the year?

We pre-paid our preschool tuition for 2012-2013 in Sept 2012 to get a 10% discount for DS#1. Even if I've already paid it, can I allocate for it next year for the five months he'll be attending in 2013?

DS#2 will be attending next year (2013-2014) and I intend to do the same with prepayment. Should I put in for the full year, or only Sept-Dec? How does it work if you prepay?

TIA.

Posted 11/14/12 2:15 PM

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Xelindrya
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Veronica

Dependent Care FSA question --

I prepaid my full year for before and aftercare. I put it ALL on this year's FSA. Next year I pay for the last 5m (without before and aftercare).

Though I think there's a thing about not being able to submit for 'unused' services or something. I can't remember. But if the invoice reads Due as of 08/01/2012, they had no issues. But it was ALL in full, not just prorata the amount for the 2012 calendar year.

Posted 11/14/12 2:46 PM

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bpmom
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Re: Dependent Care FSA question --

Posted by Xelindrya

I prepaid my full year for before and aftercare. I put it ALL on this year's FSA. Next year I pay for the last 5m (without before and aftercare).

Thanks. So if I understand it right, in Nov 2011, you put all of 2012's tuition on your FSA? or did you put 2012-2013 in?
I'm so confused about this, and of course our accountant is out of town this week and our allocations need to be made by tomorrow. My procrastination!!

Posted 11/15/12 9:49 AM

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november12003
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Jenn

Re: Dependent Care FSA question --

I prorate it from September to June, 4 months in 2012, 6 months in 2013. I just take the total cost and divide it across the months. I've been doing that for 4 years and haven't had any problems.

Posted 11/15/12 9:59 AM

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Xelindrya
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Re: Dependent Care FSA question --

Posted by bdmom

Posted by Xelindrya

I prepaid my full year for before and aftercare. I put it ALL on this year's FSA. Next year I pay for the last 5m (without before and aftercare).

Thanks. So if I understand it right, in Nov 2011, you put all of 2012's tuition on your FSA? or did you put 2012-2013 in?
I'm so confused about this, and of course our accountant is out of town this week and our allocations need to be made by tomorrow. My procrastination!!

Here’s what I have always done:

Nov 2011 I signed up for $5000 (max available) for Dep FSA

Jan 1st I paid my full monthly tuition $800 plus $100 for supplies
Feb I paid my full tuition of $800 and filed for the $1700 due back on January & February
Mar I paid my full tuition of $800 and filed for the $800 due back on March
Apr I paid my full tuition of $800 and filed for the $800 due back on April
May I paid my full tuition of $800 and filed for the $800 due back on May
Aug I paid in full $2000 tuition for ALL of the 2012-2013 before and after care, plus $100 Supplies cost and filed for it all.

$800 X 5 = $4000 Monthly tuition (includes before and aftercare)
$100 X 2 = $200 Supply Costs
$2,000 X 1 = $2,000 Before and Aftercare total 2012-2013
Total requested $6,200

I started getting back my $208.33 (or $208.34) checks in February and get them every two weeks for the entire year, regardless if AJ is in school or not. I always have done it this way. I file for the first 5months or so and I am almost ALWAYS thru all of my $5000 allocation. In NY it was faster, here I generally need one or two more installments before I hit my max. Then I stop. I get checks all year long.

I always wait past January so there’s money funded in my ‘bucket’ if you will. They only pay you back what you’ve paid in. So I literally see it come out of my check pre-tax and a week later get the check for the same. And February is generally when I need a ‘break’ if you will.

I start to collect checks in the summer, my budget considers $416 income from Dep FSA to offset my tuition on a go forward basis. So I pay ‘in full’ for January then every month after that I have a reduction. Then in the summer I save them and its how I was able to help prepay school.

2012 Election will be different because AJ will be going to public school in the fall of 2013. So I am counting 5months at $683 (my reduced tuition since before and after care are paid in full). Then I’m adding $100 for Supply costs and requesting only $3500. Same as before, I’ll pay January then File for all months. So I’ll have income from the Dep FSA through the summer and fall. Its going to be around $145 which will offset the aftercare program for Public School (which is also eligible, but since its my first year I figured I’d let it ride until I can estimate the costs better).

Hope I didn’t complicate it.
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