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Talk to me about FSA- Dependent Care Account

p2p91507p2p91507
in Northern California Babies

This is all new to me.  DH's work is having open enrollment right now. A friend tried to explain it to me, but the last time he did was 10+ years ago, so I want to see if I understand this correctly.

DS is in day care 2 days/week right now. If we start a Dependent Care Expense Account and take money out of DH's check pre tax and into this account, we will get reimbursed for the day care expense correct? Then are we still able to deduct the day care expense on our taxes if we do a dependent care expense account?

TIA!

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Re: Talk to me about FSA- Dependent Care Account

  • StructenggalStructenggal member
    The maximum amount allowed for the dependent care reimbursable is $5000.  So, you can take up to $5000 out of your DH's paycheck pre-tax to help with daycare expenses.  If you do the dependent care, you can only count anything above and beyond the $5000 (or whatever amount you choose to do with the dependent care reimbursable) on your taxes.  
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  • p2p91507p2p91507

    imageStructenggal:
    The maximum amount allowed for the dependent care reimbursable is $5000.  So, you can take up to $5000 out of your DH's paycheck pre-tax to help with daycare expenses.  If you do the dependent care, you can only count anything above and beyond the $5000 (or whatever amount you choose to do with the dependent care reimbursable) on your taxes.  

    Thank you! That is what I thought too, but he made it sound you could do both and not just on the amount that is over and above the $5K.

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  • green*eyesgreen*eyes
    Another feature is that you yourself need to earn at least the amount that DH is putting into the account.  In other words, if you are an SAHM your DH cannot use the account at all.  If you earn less than $5k, you can only put up to the amount that you'll actually earn that year.
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  • p2p91507p2p91507

    imagegreen*eyes:
    Another feature is that you yourself need to earn at least the amount that DH is putting into the account.  In other words, if you are an SAHM your DH cannot use the account at all.  If you earn less than $5k, you can only put up to the amount that you'll actually earn that year.

    Thanks!! That isn't a problem for us, we make almost exactly the same amount of $$ at the end of the year.

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