Dependant FSA
10-22-2015 | 03:25 PM
#1
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Joined: Jun 2006
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Dependant FSA
Just signed up for the max. Everything I have found says this is a no brainer but I just wanted to verify with the masses. I never like money coming out of my check and the lose it or lose it scares me.
We pay around $1400/month for daycare and that isn't going to change in the next year. Simple math puts that near $17k/year or only 1/3rd that Ill have to hit to cover the 5 thousand.
From what I hear, I basically save my tax bracket out of that $5000 because its coming out pre tax and reimbursing us for daycare expenses.
Any reason I would NOT want this??
We pay around $1400/month for daycare and that isn't going to change in the next year. Simple math puts that near $17k/year or only 1/3rd that Ill have to hit to cover the 5 thousand.
From what I hear, I basically save my tax bracket out of that $5000 because its coming out pre tax and reimbursing us for daycare expenses.
Any reason I would NOT want this??
10-22-2015 | 09:07 PM
#2
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Joined: Jun 2008
Posts: 79
Likes: 0
Just signed up for the max. Everything I have found says this is a no brainer but I just wanted to verify with the masses. I never like money coming out of my check and the lose it or lose it scares me.
We pay around $1400/month for daycare and that isn't going to change in the next year. Simple math puts that near $17k/year or only 1/3rd that Ill have to hit to cover the 5 thousand.
From what I hear, I basically save my tax bracket out of that $5000 because its coming out pre tax and reimbursing us for daycare expenses.
Any reason I would NOT want this??
We pay around $1400/month for daycare and that isn't going to change in the next year. Simple math puts that near $17k/year or only 1/3rd that Ill have to hit to cover the 5 thousand.
From what I hear, I basically save my tax bracket out of that $5000 because its coming out pre tax and reimbursing us for daycare expenses.
Any reason I would NOT want this??
10-23-2015 | 01:34 AM
#3
Thread Starter
Moderator
Joined: Jun 2006
Posts: 4,077
Likes: 40
Great, thank you.
It won't take long because they'll take ~$450/month out and we pay more than that to the provider each month. At the end of the month we should be able to submit.
They don't allow that much of a deduction for daycare (it's capped) so this at least closes the gap I hope. Hopefully daycare knows what they're doing with regards to the receipt.
How do I get reimbursed? Once it starts up should I receive paperwork to get direct deposit set up?
It won't take long because they'll take ~$450/month out and we pay more than that to the provider each month. At the end of the month we should be able to submit.
They don't allow that much of a deduction for daycare (it's capped) so this at least closes the gap I hope. Hopefully daycare knows what they're doing with regards to the receipt.
How do I get reimbursed? Once it starts up should I receive paperwork to get direct deposit set up?
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