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Dependent care FSA
Posted on 11/8/22 at 6:50 pm
Posted on 11/8/22 at 6:50 pm
My employer offers DCFSA but I’ve never taken the time to look into it. We pay $800/month in child care and $1200/month during the summer. What are the cons of using the DCFSA? Is it better than the child care tax credit? Thanks in advance
This post was edited on 11/8/22 at 6:57 pm
6
Posted on 11/8/22 at 6:57 pm to Uncle JackD
I assume daycare is $800? Summer camps qualify as well. Kid has to be <13 years old.
A DC FSA is a no brainer. You're avoiding taxes.
A married couple filing together can have $5,000 put into the FSA per year. You should max that out since your qualifying (based on limited info) expenses are more than that.
The con is it is use it or lose it.
A DC FSA is a no brainer. You're avoiding taxes.
A married couple filing together can have $5,000 put into the FSA per year. You should max that out since your qualifying (based on limited info) expenses are more than that.
The con is it is use it or lose it.
Posted on 11/8/22 at 7:12 pm to Teddy Ruxpin
quote:Daycare Expenses will definitely exceed the 5k max so losing it is not a concern.
You should max that out since your qualifying (based on limited info) expenses are more than that.
Posted on 11/8/22 at 7:15 pm to Uncle JackD
Do it. They take pretax money, lower your taxable income, and cut you a check in January/February.
Posted on 11/8/22 at 7:20 pm to SwampBooty
You can use it in combination with HSA, right?
Posted on 11/8/22 at 7:32 pm to Uncle JackD
quote:
You can use it in combination with HSA, right?
I had the understanding that you couldn't do HSA and FSA in the same year.
Posted on 11/8/22 at 7:33 pm to thegreatboudini
FSA and FSA dependent care are different things. HSA can be paired with FSA Dependent
Posted on 11/8/22 at 7:39 pm to jsk020
quote:Thats my understanding also. HSA + DCFSA is good to go but HSA + FSA is no beuno unless your deductible is met, then you’re allowed to use FSA.
FSA and FSA dependent care are different things. HSA can be paired with FSA Dependent
Posted on 11/8/22 at 8:33 pm to Uncle JackD
If you have an HSA, you can only have a limited purpose FSA on the health side which only reimburses dental and vision claims.
DCFSA has nothing to do with HDHP/HSA.
DCFSA has nothing to do with HDHP/HSA.
This post was edited on 11/8/22 at 8:34 pm
Posted on 11/8/22 at 8:50 pm to SwampBooty
quote:note that the check might not be automatic. Don’t forget about getting your 5k back!
Do it. They take pretax money, lower your taxable income, and cut you a check in January/February.
Posted on 11/8/22 at 8:51 pm to Uncle JackD
What about a HC FSA, I wasn't planning on using it but didn't think about it lowering my tax burden.
Posted on 11/8/22 at 9:00 pm to SwampBooty
quote:Splain dat. I can’t use the contributed $$ to pay child care monthly?
They take pretax money, lower your taxable income, and cut you a check in January/February.
Posted on 11/8/22 at 9:58 pm to Uncle JackD
I did it this year. After I had paid over $5000 in child care by March, I submitted it all at once. They cut me a check for what I had put in already, and I’ve been getting a weekly $96.15 ever since then for the rest of the year. That’s how much is sent to them from my paycheck before taxes each week.
It’s a little annoying having to deposit that check every week. But, I’ll never complain about tax free money.
It’s a little annoying having to deposit that check every week. But, I’ll never complain about tax free money.
Posted on 11/8/22 at 10:04 pm to Uncle JackD
quote:
Splain dat. I can’t use the contributed $$ to pay child care monthly?
You can only be reimbursed. Each paycheck you have a certain amount withheld pretax. If you go for the full $5000, that’s 96.15 each week. You have to submit a claim (proof that you paid child care) to get reimbursed, but you can oNly get reimbursed the amount that you’ve contributed so far in the year. Some people wait until the last of December and submit a claim so they can get one $5000 check. Some submit claims monthly. Some wait until they’ve paid $5000 in child care and then submit one single claim, maybe around March or April. You’d then get a check for a couple grand (what you’ve contributed thus far) then you’d get periodic checks equivalent to what you withhold each paycheck for the rest of the year.
Posted on 11/8/22 at 10:39 pm to Uncle JackD
This was my experience:
1) Reimbursement is a pain in the arse.
2) Child care credit kind of took care of it from a tax benefit standpoint.
1) Reimbursement is a pain in the arse.
2) Child care credit kind of took care of it from a tax benefit standpoint.
Posted on 11/8/22 at 11:22 pm to castorinho
quote:
Reimbursement is a pain in the arse.
You may have a shitty administrator.
I get electronic pdf receipts from my daycare. Upload to FSA site and done.
Posted on 11/9/22 at 5:03 am to Teddy Ruxpin
Appreciate the info, fellas. 
Posted on 11/9/22 at 7:12 am to jacquespene8
What is your administrator for the FSA? Mine are direct deposited.
From your post and another I saw, there are some real mom and pop crap operations running these programs for some people.
From your post and another I saw, there are some real mom and pop crap operations running these programs for some people.
This post was edited on 11/9/22 at 7:13 am
Posted on 11/9/22 at 7:14 am to Teddy Ruxpin
I have a call with HR at 9 and I’ll find out.
Posted on 11/9/22 at 7:36 am to Teddy Ruxpin
quote:not really. We use(d) Wex.
You may have a shitty administrator.
Just did not feel like doing all that when the child care credit made it about a wash for us
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