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29 votes

Affording Daycare for first child

I feel like you're getting overwhelmed with all of the variables and possible scenarios and are trying too hard to optimize your taxes and budget. I would suggest simplifying things and not trying to ...
D Stanley's user avatar
  • 138k
15 votes

Affording Daycare for first child

The bottom line is that children are expensive. It is highly unlikely that you will recoup a significant costs of having children through tax savings. While many parents go overboard on spending, ...
Pete B.'s user avatar
  • 77.1k
13 votes
Accepted

How much does it cost to raise a child for the average American family?

How much does the average American household spend on raising a child? The USDA has been tracking the cost of raising a child in the US since 1960 and their most recent report from 2015 contains the ...
Brian's user avatar
  • 365
9 votes

Affording Daycare for first child

First thing, it's scary having your first but you'll work it out. Just breathe. The good news is that you can afford daycare! You will even have money left over at the end of the month so you can ...
JimmyJames's user avatar
  • 3,888
6 votes
Accepted

US taxes small mistake that doesn’t change tax or refund

Is this the kind of thing to send an amended tax return over? No. If the error didn't result in more credit, it's because you've already gotten the maximum credit/benefit available to you. The IRS ...
Hart CO's user avatar
  • 70.6k
4 votes
Accepted

Is there any program American can take advantage of to help offset childcare costs during Covid-19?

Some employers have waived some open enrollment deadlines for applying for a Dependent Care Inflexible Savings Account (a "DC FSA"). This is implemented as a deduction from your income, ...
Bryce's user avatar
  • 2,560
2 votes

How much will I benefit if I get receipts for child care? (Canada)

Yes, you are correct in estimating how much you would save on your federal and provincial income taxes. You could also consider any other government benefits which may increase as the child care ...
Accountant Derek's user avatar
2 votes

Affording Daycare for first child

Daycare is definitely expensive - and it sort of has to be, when you think about it; particularly at the infant age, you need one caretaker per 3 children, meaning you're paying at least 1/3 of a ...
Joe's user avatar
  • 35.8k
2 votes
Accepted

Dependent Care FSA Payment - Bill Before End of Plan, Due Date After Plan Year Ends

You don't need to worry about the due date. What matters is the date of service / when services were incurred. Note: One thing to watch for. My FSA plan is 1/1/2020 - 12/31/2020 but I can use the FSA ...
mkennedy's user avatar
  • 1,208
1 vote

Dependent Care FSA prepayment in the same year?

My child's care is $1,900 a month. If I sign up for a Dependent Care FSA, I'm told that the funds are immediately available for use in the coverage year. Can you pay on January 1 2024, the full $5,000 ...
mhoran_psprep's user avatar
1 vote

What is sufficient evidence for Dependent Care Account reimbursement?

Tell your payroll provider that you need to submit your nanny's wages for an fsa reimbursement. They deal with this all the time and have a letter with all of the relevant info that you can give to ...
Sparrowhawk's user avatar
1 vote

Affording Daycare for first child

There are tax benefits that somewhat offset the costs, but they're fairly small: Exemptions (line 42 on 1040). You can subtract $4050 (2016; may differ in future) per dependent in computing your ...
R.. GitHub STOP HELPING ICE's user avatar
1 vote

Does year of payment matter for Dependent Care FSA?

This is probably more of a long comment than an answer, but here we go. Have you called your employer's FSA administrator? What will matter here, almost more than what the IRS says is allowed, will ...
quid's user avatar
  • 49k
1 vote

In a 2 income family, is it more tax beneficial for the lower income spouse be the Primary Caregiver (Ontario)?

There is no difference because CESG grants are calculated using family income, the sum of both your salaries. This link explains it. If your net family income is lower than 44,701$ the CESG grants ...
Armando's user avatar
  • 1,020

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