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Flexible Savings Account for Childcare?

July 22nd, 2014 at 04:00 pm

I've never used an FSA before and I was wondering if anyone out there has? Supposedly my employer will take the money out pretax and I submit a form each time I get a receipt from my daycare provider and I will be reimbursed. I've used an online calculator and it looks like this is better than the childcare tax credit of 600 for the year that I was previously getting. Looks like this works out to an additional 1200 for the year? Sounds great, keep your fingers crossed it's as easy as they're making it out to be!

Posted in Uncategorized | 6 Comments »

6 Responses to “Flexible Savings Account for Childcare?”

  1. ceejay74 Says:
    July 22nd, 2014 at 04:26 pm 1406046397
    1406046397

    Yep, I use this, and yep, I too calculated the tax savings to be about $1200. With my company anyway, it's pretty easy!

  2. Bluebird Says:
    July 22nd, 2014 at 04:42 pm 1406047344
    1406047344

    I've used it for years. Very easy and no issues. Love the tax savings. With the dependent care FSA, you will only be reimbursed up to the amount you've contributed weekly/biweekly, etc. Unlike the medical FSA where you can submit expenses and be reimbursed up to your annual limit even though all contributions haven't been made yet. At least that's how mine works.

  3. creditcardfree Says:
    July 22nd, 2014 at 06:12 pm 1406052768
    1406052768

    I never had to use it for child care, but we used it for medical when my husband was employed in the private sector. Loved it! I especially like it since it had a debit card attached and was only ask to submit some receipts.

    You might ask another coworker who uses it how it has worked for them so you can be even more clear on how it works with your employer. HR would be a good source too.

  4. Dental Floss Tycoon Says:
    July 22nd, 2014 at 10:18 pm 1406067509
    1406067509

    I have a FSA, and fund it every year for reimbursements for medical deductibles, co-pays, co-insurance, and non-covered dental and eyeglasses expenses. Mine will also reimburse for parking fees at the medical center parking lot. But, I've never used one for a dependent care or child care expense. Several years ago you could get reimbursed for lots of over the counter stuff, but that has changed. For example, I was using it to reimburse the 81mg Aspirin and acid reflux meds and Vitamins, but now we have to submit a prescription to get that stuff reimbursed. But it will reimburse for denture care items like Polygrip and Fixodent without a Rx. Our plan comes with a manual of all the coverages and requirements.

  5. frugalredhead Says:
    July 23rd, 2014 at 01:38 am 1406079535
    1406079535

    I've used it for daycare since my oldest was born. Very easy! I contribute the max (which doesn't even come close to covering daycare). I have it direct deposited to my Capital One 360 debit card and then that's my grocery money for the pay period. Definitely do it! I think I had read way back when that it's almost always a better way to go than the tax credit.

  6. guppy Says:
    July 24th, 2014 at 04:44 pm 1406220286
    1406220286

    Thanks for all the info! They start deducting Aug 15th woohoo!

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