amyl[at]paxemail.com wrote:

- quote -

Actually, the two (tax deduction vs tax credit) are not
necessarily mutually exclusive. It all depends on your
financial situation, the amount deferred through the
dependent care account, and your qualifying expenses. Perhaps
your tax preparer can run some "what if" calculations for you,
so that you can assess each scenario.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

I am a full time student and my husband works. We put our
child in daycare on the days I am at school. At the end of
the year the tax preparer that does our taxes asks us how
much we spend on daycare expenses. I noticed my husband can
sign up for a dependent care account where those dollars can
be taken out pre-tax. Can someone explain what the
difference between the two is? Is one way more advantageous
than the other? I would imagine you can only use one or the
other?

Thanks
Amy

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >