Reply to How much do you spend on childcare monthly?

Forum Index » Money and Finances

Reply to "How much do you spend on childcare monthly?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]$3150 for two kids in daycare.

There are childcare FSA's if your employer offers one (feds get it) that let you apply $5000 pre-tax money for childcare costs. As you can see, for me that covers less than 2 months of care.

There is also a childcare credit which caps at $3000/child up to $6000 total but is phased out based on income. You have to deduct any FSA money from the credit. So if you only have 1 kid, if you use the FSA you can not use the childcare credit.

For my two kids, [b]I use the $5000 FSA (worth about $1400 in tax savings), and then I get to claim $1000 additional [/b]for the childcare credit, but at my income level 80% of it is phased out so I get an extra $200 credit. [/quote]

Really??  I thought you could only use one or the other, but not claim both[/quote]

You can do both, as explained (whatever you put in the FSA is subtracted from what you can get the credit for--people who put $5000 in the FSA can only get the credit for $1000). [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics