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#3
11-06-2005, 04:09 PM
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 Re: FSA or Child Care Credit? - quote - > I'd use the FSA. That way, you're saving 28% of that $5000.
You also save FICA/Medicare tax.__ Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH << ================================================== ===== > << 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. > << ================================================== ===== > |
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#2
11-04-2005, 03:50 AM
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| Re: FSA or Child Care Credit? russ[at]russ.net wrote: - quote - > Is it generally better to do the $5000 pre-tax on an
Boy do I have a document for you. Download the following> employers FSA plan or to not use that and deduct the > child-care expenses yourself on your taxes? Assuming you're > in the 28% bracket and spend well over the $5000/yr on day > care as well. pdf file from 125plan.com. It uses the 2005 tax rates and has tables that compute for you which is the better option: FSA or tax credit. http://www.125plan.com/FF-304.pdf -- Alan http://taxtopics.net << ================================================== ===== > << 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. > << ================================================== ===== > |
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#1
11-04-2005, 03:50 AM
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| Re: FSA or Child Care Credit? I'd use the FSA. That way, you're saving 28% of that $5000. If you just pay it OOP and deduct it on your taxes, you'll not get credit for 100% of the $5000 expense. << ================================================== ===== > << 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. > << ================================================== ===== > |
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11-04-2005, 03:31 AM
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| Re: FSA or Child Care Credit? russ[at]russ.net wrote: - quote - > Is it generally better to do the $5000 pre-tax on an
It depends. On the actual income and expense figures, your> employers FSA plan or to not use that and deduct the > child-care expenses yourself on your taxes? Assuming you're > in the 28% bracket and spend well over the $5000/yr on day > care as well. marginal tax rate, and the number of children receiving day care. You should sit down and figure it both ways, and then select the path that provides the best tax result for you. Offhand, I would say that using pre-tax money (your FSA) to pay the expenses might be better than getting a 20% tax credit by using form 2441. << ================================================== ===== > << 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. > << ================================================== ===== > |
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#-1
11-03-2005, 02:50 AM
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| FSA or Child Care Credit? Is it generally better to do the $5000 pre-tax on an employers FSA plan or to not use that and deduct the child-care expenses yourself on your taxes? Assuming you're in the 28% bracket and spend well over the $5000/yr on day care as well. << ================================================== ===== > << 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. > << ================================================== ===== > |
| Tags |
| care, child, credit, fsa |
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