tag:blogger.com,1999:blog-6318055043707993918.post7135760655708314032..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: USE YOUR DEPENDENT CARE FSA TO PAY FOR SUMMER CAMPRobert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6318055043707993918.post-89292756520512610632016-08-30T14:57:01.564-04:002016-08-30T14:57:01.564-04:00ANON-
You are making it out to be harder than it ...ANON-<br /><br />You are making it out to be harder than it actually is.<br /><br />I have no personal experience with the workings of such a plan. But you should be able to either have the system pay your child care provider directly or reimburse yourself for payments you have made - so you would not lose any of your bi-weekly withholding.<br /><br />In addition to the "pre-tax" treatment of the $5,000 for federal, probably state, and FICA taxes (at least Medicare) you will also get a tax credit based on $1,000 of excess costs.<br /><br />I welcome any of my readers with personal experience of how such an FSA works to reply to Anon's questions.<br /><br />RDF<br /><br />RDF<br /><br />Robert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-47861962054670670452016-08-30T10:51:39.450-04:002016-08-30T10:51:39.450-04:00Can someone walk me through using the FSA in pract...Can someone walk me through using the FSA in practical terms? I spent $1,100/month in day care (2 kids). Based on everything I read, because of the tax benefits, it would be advantageous to do the FSA. But if max is $5k, then my employer takes $192/pay out of pay check? But then each month, I'd some how transfer $384 from the FSA to daycare provider, but pay remaining $800 out of pocket? What about like December 21st paycheck. Employer takes out the $192, but I already paid Daycare for the month. I just lose it? since it doesn't roll over? <br /><br />I want to take advantage of the tax break, but it all just seems like a pain to track/pay, etc. Am I making it out to be harder than it actually is? Thanks for any practical examples!<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-37770923675570251312013-07-01T09:10:55.086-04:002013-07-01T09:10:55.086-04:00IT-
OOPS!
Good catch! You are correct. I have ...IT-<br /><br />OOPS!<br /><br />Good catch! You are correct. I have made the correction.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-63852465972547407482013-07-01T09:03:35.383-04:002013-07-01T09:03:35.383-04:00I think you mean Form 2441, not 1116 since the 111...I think you mean Form 2441, not 1116 since the 1116 is the Foreign Tax Credit Form & 2441 is the Child & Dependent Care Credit Form.Indy Taxmanhttps://www.blogger.com/profile/06786576235600398292noreply@blogger.com