tag:blogger.com,1999:blog-7793123158324784883.post8657752301957182198..comments2009-12-09T07:30:58.664-08:00Comments on Baby Bishop 2009: Day Care (Dad)DaniBhttp://www.blogger.com/profile/07849366234567016620noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7793123158324784883.post-15902663188495725412009-07-06T08:09:04.094-07:002009-07-06T08:09:04.094-07:00We haven't begun looking just yet. I suppose w...We haven't begun looking just yet. I suppose we should!DaniBhttps://www.blogger.com/profile/07849366234567016620noreply@blogger.comtag:blogger.com,1999:blog-7793123158324784883.post-91827404680370814642009-07-06T08:05:23.645-07:002009-07-06T08:05:23.645-07:00You should get your 1000 tax credit in April even ...You should get your 1000 tax credit in April even if the baby is born 12/31.<br /><br />I totally get the day care dilemna. I was really feraked out about it. Have you gotten your name on any waiting lists? Or looked at any home day cares with just a few kids?Danahttps://www.blogger.com/profile/08256185158107977427noreply@blogger.comtag:blogger.com,1999:blog-7793123158324784883.post-71175934141732273682009-07-02T09:21:01.653-07:002009-07-02T09:21:01.653-07:00Well, you should be able to get a pretty good idea...Well, you should be able to get a pretty good idea of what the daycare costs when you find the one you want to use. And, you don't have to deduct the entire amount. So, let's say that it's going to cost you $10,000 for the year, you can set your FSA up for $5,000 just to see how it goes. You shouldn't have any trouble using that up by the end of the year.<br />As far as Medical expenses, I'm not exactly sure how that works. The daycare FSA may be different than the medical FSA. Plus, if I recall correctly you have an HSA plan, which means you can't use FSA dollars on anything you use your HSA dollars for. So, it's considered a limited FSA (I stopped contributing to an FSA for medical expenses when I started my HSA plan, b/c it's too confusing! And I work in the industry!;)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7793123158324784883.post-91640157344117667362009-07-01T09:54:20.890-07:002009-07-01T09:54:20.890-07:00The FSA is a great idea! Plus if i remember corre...The FSA is a great idea! Plus if i remember correctly i believe you can deduct medical costs from it also, so it's not hard to use up by the end of the year.momma whitehttps://www.blogger.com/profile/01987753770049439226noreply@blogger.comtag:blogger.com,1999:blog-7793123158324784883.post-59142792527728223052009-07-01T07:15:05.000-07:002009-07-01T07:15:05.000-07:00Good thoughts. I've looked into the FSA, the o...Good thoughts. I've looked into the FSA, the one thing I hate about FSA's is that you lose them at the end of the year if you haven't used them up. So unless I have a very accurate estimate of day care throughout the year, I'd be hesitant about diverting funds into a limited time account.<br /><br />The tax credit, I believe, works out about the same as the FSA, only you can get it for the actual amount (no guessing). The drawback is that it comes a year later.<br /><br />Needless to say, I'm learning a lot more about childcare planning than I ever wanted to! Keep the advice coming, though, because I'm in over my head!<br /><br />Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7793123158324784883.post-39733002666477417102009-06-30T20:06:46.706-07:002009-06-30T20:06:46.706-07:00Well, keep in mind that since the baby will be bor...Well, keep in mind that since the baby will be born in December, you'll get the additional deduction on your 2009 taxes.<br />You may also want to look into whether or not your company offers a Flexible Spending Account (FSA) to use towards daycare. You choose a certain amount of money to come out of your paycheck pre-tax. Then you use that money to pay for daycare. There are a couple of tax benefits to doing that.<br />If they don't offer that, you should be able to get a tax credit of a certain percentage of what you pay towards daycare. <br />You can't get both - if you have the FSA, you won't be able to get the tax credit. But, you will more than likely get a better tax benefit by using the FSA if it is an option than the govt tax credit.Anonymousnoreply@blogger.com