TAP <t...[at]nowhere.org> wrote:

- quote -

If you pay for services before they are provided, you can
count the prepaid expenses only in the year the care is
received. Claim the expenses for the later year as if they
were actually paid in that later year. Your claim for the
current year would be based on the actual cost for this
year's services.

http://www.irs.gov/publications/p503/ar02.html#d0e1426

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My daughter is in private preschool/daycare which runs
September 2007 to June 2008. We have paid most of the
tuition already in advance and will have paid it all by the
end of 2007.

So...can we put money into a daycare FSA for 2008 and claim
$xxx at the end of every month for the months January 2008
through June 2008. My reasoning/doubt being that the service
will be provided in 2008 even though the fees will have been
paid in advance in 2007, a different tax year?

And also (since we didn't set up an FSA this year) can we
claim a daycare tax credit for the months September 2007
through December 2007 based on an average monthly cost.

TIA

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >