Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-27-2014, 04:36 PM
Junior Member
 
Join Date: Mar 2014
Posts: 2
Is Child care expense eligible as wife diagnosed with degenerative disc

My wife was diagnosed with degenerative disc disorder last year. I had put 5000 in child care**FSA as she was not able to take care of our 2 year old kid full time. She also suffers from planter fasciitis so can't stand for a long time. Can I claim child care expenses due to her medical condition.
I have medical report and X-rays to support .



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-29-2014, 08:20 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by Viju View Post
My wife was diagnosed with degenerative disc disorder last year. I had put 5000 in child care**FSA as she was not able to take care of our 2 year old kid full time. She also suffers from planter fasciitis so can't stand for a long time. Can I claim child care expenses due to her medical condition.
I have medical report and X-rays to support .
no double deduction on the exp paid from fsa. A flexible spending account allows you to set aside some of your pre-tax income for medical costs and dependent care. Because the money is taken out before you're taxed, you have a lower adjusted gross income, which lowers your federal taxes. Since the money you put into an FSA is already deducted from your taxes, you can't deduct your FSA expenses on your return.

The irs offers working parents two ways to reap tax savings from the cost of paying for child care while the parent or parents are at work or in school. One is the Dependent Care FSA,.A dependent care FSA allows you to take money directly out of a paycheck and move it to an account specifically set aside for paying the cost of child care. You may set aside up to $5k for two or more children, or $2.5k for one child. The account is used to reimburse parents for payments made to baby-sitters or daycare centers for child care provided so the parents could work. The money is taken out ofyourpaycheck pre-tax. This means that you do not have to pay federal taxes on this amount. In addition, this money is not subject to the 7.5 percent Medicare tax. The higher your tax bracket, the more tax savings this option will reap. In the 25 percent tax bracket, for example, the savings would actually be 32.5 percent of up to $5k, or a maximum tax savings of $1,625.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 03-29-2014, 10:36 PM
Junior Member
 
Join Date: Mar 2014
Posts: 2
Quote:
Originally Posted by Viju View Post
My wife was diagnosed with degenerative disc disorder last year. I had put 5000 in child care**FSA as she was not able to take care of our 2 year old kid full time. She also suffers from planter fasciitis so can't stand for a long time. Can I claim child care expenses due to her medical condition.
I have medical report and X-rays to support .


Thanks for the reply. I understand there is no double deduction on fsa. I Iwanted to know if I am eligible to show $2500 set aside for child care expense though my wife dint get back to work or study. Is her medical condition good enough to justify.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Divorce decree says husband can claim child as dependant - child turned 18, now wife says she is claiming son - Help. MacieRayne Divorce Tax Issues 2 02-07-2014 01:03 PM
Paid for Child Care Titanmaximum Income 1 01-28-2012 08:11 AM
Not legally separated, wife has child with fiance Nyarth Divorce Tax Issues 0 01-23-2012 07:19 PM
Child Care deduction depstein1983 Itemized Deductions 1 08-09-2011 02:57 AM
529 plan eligible expense question jmmorgan Education Planning 0 07-30-2009 10:20 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.