Comments on: Dependent Day Care Flexible Spending Account (FSA)

By: Sharan

Sharan — Mon, 06 Feb 2012 18:38:37 +0000

Somewhat similar situation but in my case I continued the FSA with a new employer for the balance of the money. Now the new employer says expense was incurred prior to joining and hence cannot be reimbursed. Any advise?

By: Christine

Christine — Wed, 04 Jan 2012 00:15:14 +0000

My situation is as follow. I have started a new consulting business, so no income yet. Of course, I do want to make money and generate income in 2012 but no way to predict how this will all pen out. Does DCFSA penalize startup owners? I red it’s available for people looking full-time for a job, but what about people actually trying to create a living for themselves/starting a new business? And then, it said that you have to earn at least $5000/yr in order to claim DCFSA… so how would you be able to do this while looking 100% for a job (or developing a new venture)? Please help, I am confused!

By: MoneyNing

MoneyNing — Mon, 05 Dec 2011 17:39:43 +0000

I’m not a tax professional so you should discuss this with one but as I understand the current rules, money in the FSA can be paid to you as long as you aren’t claimed as a dependent on your children’s tax returns and your care is going to allow them to work (or look for work). You should also make sure that you report all income as it’s technically income so depending on your situation, it might not really be much of a benefit financially.

By: Janie Wigley

Janie Wigley — Mon, 05 Dec 2011 05:14:57 +0000

My infant grandson is in daycare. His parents aren’t happy with the daycare and would prefer that I be his nanny in their home. Can my grandson’s mother’s FSA be used to pay me to care for my grandson if they remove him from the daycare center?

By: Mike B

Mike B — Wed, 27 Jul 2011 17:37:37 +0000

Did you ever get a resolution on this? I just found myself in the same situation.

By: David

David — Wed, 02 Feb 2011 17:18:28 +0000

Is this school a “school” that has a curriculum/charges tuition or is it a “child care” center? If the former, the tuition expenses are not eligible. You can however claim for “after school” day care.

By: David

David — Wed, 02 Feb 2011 17:11:57 +0000

You had time till March 31, 2010.

By: beth

beth — Fri, 07 Jan 2011 22:25:36 +0000

You have to pick a credit either you take the 3000 child tax credit or you do Flex spending not both. When I signed up for FSA they had a chart with a breakdown based on your income about when you should use the FSA versus the dependent care credit.

By: Leah

Leah — Sat, 01 Jan 2011 02:16:08 +0000

The cost of day care for my child far exceeds the $5,000 limit on the DCFSA. Can I claim the $3,000 tax credit for the costs that go above and beyond the $5,000 from the FSA?

By: Leo

Leo — Mon, 13 Dec 2010 21:43:02 +0000

Nevermind. Called the IRS for the answer. Can’t use the FSA next year and this year, I still have to file a Joint Married tax return with the Ex-Wife since I did the entire $5000.00. Sometimes I wish I could know just a little bit of what the future holds.