Post from Parenting-Dependent FSA Care for School Aged Children-??

Does anyone do this for their children in preschool, camp or daycare? I am thinking of doing this next year when I have both kids in fulltime school and I will need the care and it might save me money.
How does it actually work-do I put money in an account and then I get a check but at the same time the money is minused from that account?
Thanks :)

Re: Post from Parenting-Dependent FSA Care for School Aged Children-??

You allot a certain $ amount per paycheck - so a total $$ amount per year.

You still pay your daycare out of pocket etc. BUT you then submit the receipt/proof of payment to the FSA and get a check back for the same amount. However, it's pre-tax dollars so you're really saving money.

If your company has this option, there is also an FSA debit card where you can just pay with that (if your daycare accepts debit cards for payment), in which case you don't have to come out of pocket first.

HTH!

Re: Post from Parenting-Dependent FSA Care for School Aged Children-??

With my company, I signed up for the account and I signed up for the maximum amount ($5k). That amount is detracted from my salary, as reflected in my bi-weekly paycheck, but as pre-tax dollars, so it lowers my tax liability at the end of the tax year (essentially making it look like I make less money than I do).

As I pay for daycare, I get a receipt and submit it for reimbursement.

Hope that makes sense!