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flex spending for daycare?
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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flex spending for daycare?
what is this?? i'm seeing this on the boards. is this pre-taxed money? someone please explain! thanks!
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Posted 2/7/11 3:06 PM  |
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azoodie
Member since 8/05 8377 total posts
Name:
Team SEXY BACK
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Re: flex spending for daycare?
Some jobs offer flexible spending for dependent care. You can have up to $5000 taken out of your paycheck (pre-tax) for daycare. This money is then essentially tax-free.
At DH's job it is deducted equally over the entire year so it makes little difference in his paycheck. We just hold onto daycare receipts and get reimbursed once he has had enough deducted to cover the payment(s).
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| Posted 2/7/11 3:10 PM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: flex spending for daycare?
It is dependent care. You can also use it for camp costs.
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| Posted 2/7/11 3:29 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: flex spending for daycare?
Posted by azoodie
Some jobs offer flexible spending for dependent care. You can have up to $5000 taken out of your paycheck (pre-tax) for daycare. This money is then essentially tax-free.
At DH's job it is deducted equally over the entire year so it makes little difference in his paycheck. We just hold onto daycare receipts and get reimbursed once he has had enough deducted to cover the payment(s).
Yup it a federal deal
Caps at 5000 annually
Includes supply costs, tuition, registration fees, before and after care too
Since its drawn out by check you can only get back what you've paid in. So if you had a $5000 bill in January, you'll get about 208.33/208.34 (if bimonthly) with each check for the rest of the year if you submit it all up front.
I submit up front all my bills at the end of each month (you can't submit for a month not accrued.
So for me its $640 a month. I filed for January already and will get $208 about a week after each check. Which of course I turn around and give back to daycare. But I file about 5-6m worth then don't file for the rest of the year (blown through the full 5000) but I keep getting checks for $208 about a week after each check.
Since AJ doesnt go to daycare during the summer, I get 4 checks that I hold for the fall semester.
Its strange but its like I'm paying myself with tax free money to pay for childcare.
Wish they allowed a higher number though. Say $10,000?
My 10m term at her school costs me $8000 (includes fees and before & after care) So essentially I pay $3000 (after tax) for 10m after the adjustments with the flex plan.
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| Posted 2/7/11 3:38 PM |
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