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Started By
Message
re: Dependent care credit increased from $6000 to $16000 for 2 or more kids
Posted on 3/22/21 at 1:53 pm to castorinho
Posted on 3/22/21 at 1:53 pm to castorinho
quote:
to be fair, it's late for that considering enrollment happened months ago and most plans just won't be that flexible.
With that being said, they'll still be able to claim the credit on 3k right? (8k-5k)
Yes they can.
Some plans are offering mid-year increase adjustments due to the new law. If someone is a plan is offering that... it's not a slam dunk to automatically add 3K to the plan. You have to run the numbers and see.
0
Posted on 3/22/21 at 1:55 pm to PistolPete45
quote:
So... since this is a refundable tax credit and we always get a refund and never owe, after we take into account the $5k of depedent FSA that we used, we could potentially getting an extra $11k back on our taxes right? obviously up to our actual cost of daycare.
The credit is a percentage of the care costs.
So say one kid, $12K in annual care costs, currently putting 5K through a Dependent Care Account.
You will not pay taxes on the 5K you contributed to the account.
The next 3K will potentially be eligible for a tax credit of up to 50%, so $1,500. Depends on eligibility.
Remaining 4K spent gets no tax inventive.
Posted on 3/22/21 at 2:07 pm to LSUFanHouston
quote:
The credit is a percentage of the care costs.
So say one kid, $12K in annual care costs, currently putting 5K through a Dependent Care Account.
You will not pay taxes on the 5K you contributed to the account.
The next 3K will potentially be eligible for a tax credit of up to 50%, so $1,500. Depends on eligibility.
Remaining 4K spent gets no tax inventive.
ahhh, i knew that sounded wayyy too good to be true
This post was edited on 3/22/21 at 2:11 pm
Posted on 3/22/21 at 2:08 pm to LSUFanHouston
Is there an AGI phaseout?
Posted on 3/22/21 at 3:05 pm to TheWiz
quote:
Is there an AGI phaseout?
There is a phaseout on the credit percentage. There is not a phaseout on the additional eligibility amount.
Posted on 3/22/21 at 5:02 pm to TheWiz
quote:
Damn, baw! How many kids do you have? I guess it doesn't take much. Our toddler starts 1/2 days in August and it's $12,500/year.
HO Lee Chit. Where are y’all?
We pay $155 a week for 6-6 and don’t have to pay over the summer, Christmas, Easter, or thanksgiving break. In AP.
Posted on 3/22/21 at 9:21 pm to Pintail
New Orleans
Posted on 3/22/21 at 9:34 pm to TheWiz
(no message)
This post was edited on 2/3/25 at 8:48 am
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