"Robert McLure" <robertmclure[at]comcast.net> wrote:

- quote -

Yes, you can't double-dip. Amounts you're reimbursed out of
a CCRA do not enter into the child care tax credit. Form
2441, which you file in either case, takes care of the
computation.

- quote -

No, that one you get just because you have a child who
qualifies.

- quote -

Yes, tax free, because it's taken out even before Social
Security. The only catch is, you must spend it all every
year; any amounts you contribute but do not spend are
forfeited, and any amounts you spend on expenses that don't
qualify are taxed.

--
Chris Green

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"Robert McLure" <robertmclure[at]comcast.net> wrote

- quote -

Yes, because up-to, $5000 I believe, will have already been
paid with pre-tax money. So in all respects you will have
already received the advantage (and then some) of the tax
credit.

- quote -

No.

- quote -

It's only "tax free" if you use it for qualified child care
expenses.

If you take out to much from your pay, you'll pay tax, and
if for some reason the child doesn't qualify, or the care
doesn't qualify, you'll pay tax.

--
Paul A. Thomas, CPA
taxman at negia.net

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- quote -

Yes!!! But you're still better off having received any
portion which represents non-taxable income.

- quote -

NO

- quote -

If your employer provides dependent care benefits under a
qualified plan, you may be able to exclude these benefits
from your income. Your employer can tell you whether your
benefit plan qualifies. If it does, you must complete Part
III of either Form 2441 or Schedule 2 (Form 1040A) to claim
the exclusion. You cannot use Form 1040EZ.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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Greetings! A question for all the tax pros in here.

My wife's company has always offered a Child Care
Reimbursement Account through their benefits. We have 2
kids in daycare and pay $1450 a month. My questions are as
follows:

1. If we enroll in this program, will this affect the
'Credit for child and dependant care expenses' that I enter
each time I do my income tax?

2. Will this affect the 'Child tax credit' also?

3. Is the money tht we take out to pay the expenses REALLY
tax free? Or do we end up paying for it somewhere down the
line?

Thanks in advance for any help with this.

Bobby

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