Dependent Care FSA Question

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Topic Author
imyeti2
Posts: 115
Joined: Fri May 31, 2013 3:45 pm

Dependent Care FSA Question

Post by imyeti2 »

Hello,

Here is the situation:

We have had our child in after school program so far this year and our kids will be attending summer camps. I kept only $1.5 K aside for 2019 during open enrollment last fall. Spouse now is planning on taking up a new job this fall.

If we keep aside the $3.5 k from her pay checks from Fall to end of the year, can I get reimbursed for child care prior to spouse's new job (spring of this year or summer camps)?

Thank you.
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CAsage
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Joined: Sun Mar 27, 2016 6:25 pm

Re: Dependent Care FSA Question

Post by CAsage »

Only if spouse was actually working while the children were in camp/care. And not sleep-over camps. The gist is that you both must be tied up working....
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.
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MilleniumBuc
Posts: 140
Joined: Mon May 14, 2012 3:30 pm
Location: Florida

Re: Dependent Care FSA Question

Post by MilleniumBuc »

I think most health and dependent care companies will not reimburse you for expenses that happened before the start of your enrollment, even if it’s part of the plan year. You will have to call to verify, and like it was said before, your spouse needed to be working somewhere else at that time for the claim to be valid.
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dodecahedron
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Re: Dependent Care FSA Question

Post by dodecahedron »

Also, keep in mind that up to $6K per year of eligible child care expenses can be used as the basis for daycare credit. That is a minimum of 20% of the expense at the federal level (and potentially a higher percentage if your income is low.) Many states also have a state daycare credit as well.

You can´t doubledip, so any amount you or spouse has put into a FSA counts against that $6K for the credit. Since you are already putting $1,500 in to your FSA, the maximum your household could claim as the basis for a credit would be $4,500.

Once again, the daycare credit is only available for care provided to enable you and your spouse to both work (or look for work or be a fulltime student.) But the credit is totally flexible on the timing of your childcare expenses within the year and you don´t have to set it up during designated enrollment periods.
Topic Author
imyeti2
Posts: 115
Joined: Fri May 31, 2013 3:45 pm

Re: Dependent Care FSA Question

Post by imyeti2 »

Thank you all.

Yes, spouse was working prior to changing to a new job. However, we miscalculated when we did the open enrollment. I thought we can fix it now.

Let us call the insurance company to check.
cshell2
Posts: 481
Joined: Thu May 09, 2019 10:29 am

Re: Dependent Care FSA Question

Post by cshell2 »

dodecahedron wrote: Tue Jun 18, 2019 3:55 pm Also, keep in mind that up to $6K per year of eligible child care expenses can be used as the basis for daycare credit. That is a minimum of 20% of the expense at the federal level (and potentially a higher percentage if your income is low.) Many states also have a state daycare credit as well.

You can´t doubledip, so any amount you or spouse has put into a FSA counts against that $6K for the credit. Since you are already putting $1,500 in to your FSA, the maximum your household could claim as the basis for a credit would be $4,500.

Once again, the daycare credit is only available for care provided to enable you and your spouse to both work (or look for work or be a fulltime student.) But the credit is totally flexible on the timing of your childcare expenses within the year and you don´t have to set it up during designated enrollment periods.
The limit for the credit is only 3K for one child. The 6K limit is for 2 or more children receiving childcare.

eta: Never mind. Just realized OP had more than one.
Thorsbane
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Joined: Tue Dec 18, 2018 2:57 pm

Re: Dependent Care FSA Question

Post by Thorsbane »

So with two children and a maxed out dependent care of $5,000, you can still receive a $1,000 Child and Dependent Care Credit?
nolesrule
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Joined: Thu Feb 26, 2015 10:59 am

Re: Dependent Care FSA Question

Post by nolesrule »

Thorsbane wrote: Fri Jun 21, 2019 9:26 am So with two children and a maxed out dependent care of $5,000, you can still receive a $1,000 Child and Dependent Care Credit?
No. You will receive a credit calculated on non reimbursed expenses.

Non reimbursed expenses are total actual expenses capped at $6k (for 2+ children) less reimbursements from the DCFSA. The credit amount is 20% to 35% (depends on your Form 1040, line 7) of that calculated non-reimbursed amount amount.

See Form 2441.
BarbBrooklyn
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Re: Dependent Care FSA Question

Post by BarbBrooklyn »

Back in the 1990s, I worked at and sent my kids to day camp. When I talked to my school district's HR folks, they told me that even though I was "off" for the summer, since I was paid on a year round basis, I would be able to pay for the kiddos' summer (day) camp with FSA.

Don't know about the issue of using funds that you put in later in the year.
BarbBrooklyn | "The enemy of a good plan is the dream of a perfect plan."
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