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dependent care flexible spending account?

marsnemmomarsnemmo
in Northern California Babies

Does anyone use this for nannying/preschool cost?

 

Do you turn in a claim monthly or do you claim it in one big chunk? Is there a wrong way to do this?

Any tips would be greatly appreciated. 

Thank you. 

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Re: dependent care flexible spending account?

  • quesarahquesarah

    I do use it.  So the way it is set up at my work is a certain dollar amount comes out each month to equal the $5000 allowed.  I usually submit a claim for as much as a possibly can.  Meaning, I'll submit a claim a few months into the year for $2500.  While there may not be $2500 in the FSA, the FSA company pays out what is in there, and as I pay more into it, they then turn around and pay more out to me (until I run out of the $ amount on my claim).  I usually file two claims a year for roughly $2500 (since it adds up so fast with daycare costs). 

    There really isn't any wrong way to do it, but filling the claim form out and having DCP complete it is a hassle, so I try to do the claims in the biggest chunks that I can (without my $ sitting there for too long).  

    Hope this helps!  If you have any other questions, please let me know. 

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  • Mrs.Wright07Mrs.Wright07

    DH has it set up through his work.  We contribute the max ($5000) divided across each paycheck. 

    The system his company uses is really easy, so we just submit a claim online every other week (after payroll) and the money is transferred from the FSA account into our checking account.

     

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  • bubbs147bubbs147
    At DH's office, there is a certain amount that has to be contributed before you can start drawing out.  So once that number is hit, he starts pulling out monthly the $5k total divided by remaining months in the year.  It's so nice to get those checks! :)  (Of course it doesn't even come close to covering the cost of daycare/preschool, but it's still nice!)
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  • AvaLikeLavaAvaLikeLava member

    We do. We use the max ($5K).

    Unlike FlexMed, dependent care is a little different in how you can apply for re-imbursement. For example, with FlexMed, say you apply for $1200, because you have a procedure coming up. Each month $100 will be taken out of your check. However, you can schedule your procedure in January, submit it and it will all be covered, all $1200 (even though only $100 has been applied your account to date). You will spend the rest of the year, more or less paying it off.

    With dependent care, it's a little different, you only get back what you've put in to date. You won't be pre-reimbursed.

    DH and I typically wait until about mid-year to apply so that we don't have to fill out the paperwork each month. However, it's really up to you.

    If you are with a nanny or in-home daycare, you will need that provider's SSN or Tax ID to file. With preschools it's a bit easier, since they already provide that info typically on the monthly bill.

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  • SFAug07SFAug07 member
    We use it for our Au Pair costs. I claim it as I think of it - usually for several months. It covers $5,000 pre-tax so that's about $2,500 savings. I just fill out a form and have the Au Pair sign it, and the money comes biweekly. Nice benefit.
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