CourtClerk
Senior Member
What is the name of your state? CA
Specifically for LD, cbg and Jetx, but any other tax specialists are welcome to reply.
Here's the deal. The court system has recently negotiated into our new contract (effective 2008) that the county will now, based on your income contribute a set amount of money into a flexible spending account for dependant care expenses as long as you contribute a nominal amount of money (something like a minimum of $10/mo). I am considering taking this option, however, I need to figure out what the better tax benefit is for me in the long run before I do. Open enrollment is in October, so I need to make the decision for 2008 in a few weeks.
Q: I'm almost sure you can't have an FSA and take the dependant care credit at the end of the year both. True?
If true, then considering that with my income I'm looking at a contribution of about $3000/yr., (my child care costs run $5328/yr), wouldn't I get a bigger advantage from using the FSA? I believe the dependant care credit I get on my taxes every year is only several hundred dollars.
I'm sure this can't be this easy to look at, so I'm looking for some insight. I don't itemize and use the standard HOH deduction every year.
Specifically for LD, cbg and Jetx, but any other tax specialists are welcome to reply.
Here's the deal. The court system has recently negotiated into our new contract (effective 2008) that the county will now, based on your income contribute a set amount of money into a flexible spending account for dependant care expenses as long as you contribute a nominal amount of money (something like a minimum of $10/mo). I am considering taking this option, however, I need to figure out what the better tax benefit is for me in the long run before I do. Open enrollment is in October, so I need to make the decision for 2008 in a few weeks.
Q: I'm almost sure you can't have an FSA and take the dependant care credit at the end of the year both. True?
If true, then considering that with my income I'm looking at a contribution of about $3000/yr., (my child care costs run $5328/yr), wouldn't I get a bigger advantage from using the FSA? I believe the dependant care credit I get on my taxes every year is only several hundred dollars.
I'm sure this can't be this easy to look at, so I'm looking for some insight. I don't itemize and use the standard HOH deduction every year.