Which is better: enrolling in a daycare FSA or claiming daycare expenses on taxes?

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  • October 25, 2024 at 9:12 am #110750 Reply
    Rick

      Determine your marginal tax rate next year and multiple that times $5k then compare that to $600.

      If you are over 12% marginal tax rate (federal and state) you will save over $600.

      October 25, 2024 at 9:12 am #110751 Reply
      Kira

        yes, you will save about 600. Go for DCFSA, I did it for years, it’s a good deal if your employer offers it (and put those 600 to kids 529’s, for example)

        October 25, 2024 at 9:13 am #110752 Reply
        Melissa

          Pretax $5k in dependent care saves you $1,500

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