Paying for daycare through FSA?

maryh01 · August 2011

Is there a big advantage to doing this? We just finalized everything with our DCP and now know exactly how much we'll pay each month. I want to talk to our employers now to see about the FSAs that we can use. If you use one, can you explain how it works?

Mrs.Wright07 · August 2011

DH has a set amount deducted from each paycheck (pre-tax which is the benefit) and put into his FSA account. Every month we fill out a form so we can be reimbursed from the FSA account. We save a couple thousand dollars each year by doing it this way.

maryh01 · August 2011

Mrs.Wright07:
DH has a set amount deducted from each paycheck (pre-tax which is the benefit) and put into his FSA account. Every month we fill out a form so we can be reimbursed from the FSA account. We save a couple thousand dollars each year by doing it this way.

Thank you. So, do you get the reimbursement that same month or is there a delay?

kittylove · August 2011

maryh01:

Mrs.Wright07:
DH has a set amount deducted from each paycheck (pre-tax which is the benefit) and put into his FSA account. Every month we fill out a form so we can be reimbursed from the FSA account. We save a couple thousand dollars each year by doing it this way.

Thank you. So, do you get the reimbursement that same month or is there a delay?

We just set it up and there is a delay with ours, it takes about 2-3 weeks to get paid. Not a huge deal for us since DS's preschool isn't that much a month but I could see it being a bigger deal for others.

Mrs.Wright07 · August 2011

The way DH's is set up - We can apply for reimbursement as soon as the money hits the FSA account - Which for us is bi-weekly. However, we generally just do it as one lump sum at the end of each month.

carmelbride05 · August 2011

We just started doing this, this fiscal year. The max you can do request is $5000 (for childcare), which is definitely less than we pay per year, but it is a better savings being pre-tax, vs what you could claim when you do your taxes. As soon as I get my paycheck stub I can request the reimbursment and it takes 24-48 hrs to post (not much of a delay). So far, so good.

maryh01 · August 2011

carmelbride05:
We just started doing this, this fiscal year. The max you can do request is $5000 (for childcare), which is definitely less than we pay per year, but it is a better savings being pre-tax, vs what you could claim when you do your taxes. As soon as I get my paycheck stub I can request the reimbursment and it takes 24-48 hrs to post (not much of a delay). So far, so good.

Ohh...very cool. So is it like a direct deposit? Also, can you still claim the total amount on your taxes as dependent care or can you only claim above and beyond the $5000?

Structenggal · August 2011

maryh01:
Ohh...very cool. So is it like a direct deposit? Also, can you still claim the total amount on your taxes as dependent care or can you only claim above and beyond the $5000?

If you do the $5k through the FSA, you can only claim anything above and beyond the $5k on your taxes.

maryh01 · August 2011

Structenggal:
maryh01:
Ohh...very cool. So is it like a direct deposit? Also, can you still claim the total amount on your taxes as dependent care or can you only claim above and beyond the $5000?
If you do the $5k through the FSA, you can only claim anything above and beyond the $5k on your taxes.

Thank you...makes sense...that way you aren't double dipping.

carmelbride05 · August 2011

So it is taken directly out of your paycheck, so essentially as soon as it has been taken out, you can request the money. You can fax it or do it online. The online site is easy and fast.

Mrs.BoomBoom · August 2011

Anyone know if it's 5k per person or 5k per couple?

maryh01 · August 2011

Mrs.BoomBoom:
Anyone know if it's 5k per person or 5k per couple?

I just read it's 5k per couple. You can both contribute to one, but it's 5k per couple.

Mrs.K&C · August 2011

I use my FSA for DD's preschool. Ditto what everyone said above. When I file my taxes Turbo Tax asks me what we contributed to FSA so it automatically deduct that and we get to claim whatever is left (which is plenty with DD and DS both in preschool/daycare!).

alibee09 · August 2011

maryh01:
Mrs.BoomBoom:
Anyone know if it's 5k per person or 5k per couple?
I just read it's 5k per couple. You can both contribute to one, but it's 5k per couple.

Yup. That bums me out, too, since 5k is a drop in the daycare bucket. :P

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