OMG, just realized I forgot to claim our FSA dependent care funds for 2016

[Anonymous]

Anonymous wrote:You really need to ask your daycare provider to provide you receipts before next January. That's unacceptable.

+1. I can understand not getting an annual statement until mid-January, but not getting receipts throughout the year would be totally unacceptable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So what happens to unclaimed money?

The companies that run this scam get to keep it. That's how they make money. The ideal way to do this would be to allow everyone with a child upto 14 years (or 18 or whatever) a deduction of $2500 for childcare. No overheard, easy to prove, etc. However, that's not how it's done. Companies and their friends in congress/senate implement this scam/scheme where you deposit money with them and request it back. If you don't ask for it back in time, you lose it!

Agree with this - but on the medical side, there's a way for the company to be out money, since you can use every penny of that amount on day one of the year. If you quit two months in, there's nothing they can do to request the money back. In theory, it evens out, but the dependent care one doesn't have the same loophole.

Same concept though. They make money on people not claiming. The rules should just allow each person to claim a certain amount.. Maybe not $5K but some lower number based on what people have actually claimed over the past many years instead of enriching some scammers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You really need to ask your daycare provider to provide you receipts before next January. That's unacceptable.

+1. I can understand not getting an annual statement until mid-January, but not getting receipts throughout the year would be totally unacceptable.

Does your FSA provider allow you to have the daycare sign a form noting your monthly bill? BC I used to do this with daycare - the director would sign a form (created by the FSA provider) with the tax ID and then I didn't need to submit a receipt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So what happens to unclaimed money?

The companies that run this scam get to keep it. That's how they make money. The ideal way to do this would be to allow everyone with a child upto 14 years (or 18 or whatever) a deduction of $2500 for childcare. No overheard, easy to prove, etc. However, that's not how it's done. Companies and their friends in congress/senate implement this scam/scheme where you deposit money with them and request it back. If you don't ask for it back in time, you lose it!

Agree with this - but on the medical side, there's a way for the company to be out money, since you can use every penny of that amount on day one of the year. If you quit two months in, there's nothing they can do to request the money back. In theory, it evens out, but the dependent care one doesn't have the same loophole.

Same concept though. They make money on people not claiming. The rules should just allow each person to claim a certain amount.. Maybe not $5K but some lower number based on what people have actually claimed over the past many years instead of enriching some scammers.

Why should my amount be lowered because others can't remember to make their claims?

[Anonymous]

Anonymous wrote:

Anonymous wrote:So what happens to unclaimed money?

The companies that run this scam get to keep it. That's how they make money. The ideal way to do this would be to allow everyone with a child upto 14 years (or 18 or whatever) a deduction of $2500 for childcare. No overheard, easy to prove, etc. However, that's not how it's done. Companies and their friends in congress/senate implement this scam/scheme where you deposit money with them and request it back. If you don't ask for it back in time, you lose it!

I am sorry, but this isn't remotely a "scam." The plans have clear rules and it is the IRS that requires funds to be expended and claimed in a particular time period. It sucks that OP forgot and I agree her daycare should be able to give her more frequent receipts, but your moral outrage is entirely misplaced.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You really need to ask your daycare provider to provide you receipts before next January. That's unacceptable.

+1. I can understand not getting an annual statement until mid-January, but not getting receipts throughout the year would be totally unacceptable.

It's a home-based daycare. I'm sure she would do it if I asked. I just haven't wanted to ask for special favors. Seems like everyone else gets their receipts annually and doesn't complain.

[Anonymous]

Anonymous wrote:No one reminded you? Not even about the grace period? Sucky HR department.

Wahh, I screwed up, let's blame HR!

[Anonymous]

I wait until we've paid out $5k in daycare costs (April) and request receipts for Jan-Apr. They actually hand write them on a little form letter, takes the director 2 minutes, and then we go ahead and do the claim.

I would ask if yours would do the same.

[Anonymous]

Thanks everyone. I figured there was nothing to be done but had to ask just in case.

It would've been nice to have gotten a reminder message that specifically said, "you have unclaimed funds!" instead of the more generic notices (I could have sworn this is what FSAFeds used to do?). That probably would have gotten my attention. But ultimately it's my screw-up and my mistake. From now on this will be a standing Outlook reminder on my calendar!

[Anonymous]

OP there are many forms of documentation that you can use to claim funds your dependent care account. If you have your contract that specifies the amount you pay plus the payment terms, you can submit that with your cancelled checks or credit card statements.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You really need to ask your daycare provider to provide you receipts before next January. That's unacceptable.

+1. I can understand not getting an annual statement until mid-January, but not getting receipts throughout the year would be totally unacceptable.

It's a home-based daycare. I'm sure she would do it if I asked. I just haven't wanted to ask for special favors. Seems like everyone else gets their receipts annually and doesn't complain.

Ask her. If she doesn't do it, type up a receipt and have her sign it on the first of the following month. Tell you will not get money back if you are later than a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So what happens to unclaimed money?

The companies that run this scam get to keep it. That's how they make money. The ideal way to do this would be to allow everyone with a child upto 14 years (or 18 or whatever) a deduction of $2500 for childcare. No overheard, easy to prove, etc. However, that's not how it's done. Companies and their friends in congress/senate implement this scam/scheme where you deposit money with them and request it back. If you don't ask for it back in time, you lose it!

I am sorry, but this isn't remotely a "scam." The plans have clear rules and it is the IRS that requires funds to be expended and claimed in a particular time period. It sucks that OP forgot and I agree her daycare should be able to give her more frequent receipts, but your moral outrage is entirely misplaced.

Yeah, I don't get the scam thing. In fact I think at one point my plan actually distributed the forfeited funds to the remaining participants. It wasn't much but they definitely weren't keeping it. There isn't much the plans can do if people don't claim their money by the IRS deadline.

[Anonymous]

i never do this, its better to just claim the deduction on your taxes

[Anonymous]

Anonymous wrote:i never do this, its better to just claim the deduction on your taxes

You mean the credit?

[Anonymous]

Anonymous wrote:i never do this, its better to just claim the deduction on your taxes

Can't you do both?