Rhode Island Nesties
Candace&Kevin
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Flexible Spending Accounts
With tax season upon us and our new addition to our family, I have started looking into tax benefits for child care and flexible spending accounts. From my little bit of research, it seems to make more sense to use flexible spending accounts ($5000 per tax) for child care vs the tax credit on your return (max 20% of $2400).
Does anyone have any experience with this? I have always been leary of flexible spending accounts because it you don't spend it you lose it. But it seems like it might make sense for something that I know I will spend more then $5000 per year for? Is it a ton of paper work?
Re: Flexible Spending Accounts
I've used one for many years now. I would recommend it. I think you have to do it before the first of the year though, so you probably missed the boat for 2011.
Anyway, what I do when it comes time for Open Enrollment at work, is I calculate what I think we'll need for copays, prescriptions, contact lenses & solution, and any other major health items (for example, DD2 was born in Feb last year, so we put a lot in the FSA). Yes you do lose what you don't use, and be careful because a lot of OTC items (like diaper cream and pain medication) are no longer valid for FSA reimbursement.
This past year, I saved my receipts for the end of the year and will submit sometime soon to get a nice big fat check after the holidays. Luckily, it won't be a lot of paperwork since it is really only two big fat bills from the hospital for having DD2 (ugh!).
Oh crap. Your post is about the dependent care part. Sorry! yes, I did use that one year for DS when he was in daycare. I was nervous about putting in the max amount, so I think I did like $3000 or so. You have to have a daycare provider with a tax ID number I think. It was easy enough to reimburse, because the daycare would send out statements showing how much we spent. Someone there had to sign the form and include the tax ID; then I copied the receipt and sent it in. Very easy.
I was nervous about putting a lot in though, in case DH lost his teaching job (which, he did 18 months ago.. so he's been a SAHD ever since).
We do both child care and medical FSA. It's a little of a pain b/c at my new school I have to submit paperwork and receipts. But IMO it's totally worth it b/c with 2 kids in daycare we spend way more than the 5000. The money that comes out of your paycheck is pre tax dollars, so the total amount of money you pay taxes on gets reduced. I really like it b/c we learn to live with the smaller paycheck, then when I submit my receipts and get a live check, it's like winning the lottery! We use it to pay off bigger bills.
We also do a much smaller amount for medical. Copays, Rx, etc. I look at is as thought I would be paying for all of these things anyway, why do I not want to save money!
I do both childcare and healthcare flex spending. I think you missed the deadline though - mine had to be chosen with my 2011 benefits back in Nov, and I believe DH's had to be chosen around the same time (he's at NUWC too).
There is a limit to dependent care flex spending - I believe it's 4 or 5K per child. We decided to max mine out, since my company gives me 400 if I participate. Almost all of DS's daycare is covered since the price is so great at the base. DH looked into doing his as well to cover the difference, but we were told we couldn't.
I have never noticed the money out of my paycheck, and I wait until the end of the year to do my reimbursements. It's nice to get a few big checks in the mail, when spending so much money on Christmas! The reimbursement has always been easy, fill out a simple form and attach receipts.
Let me know if you have any other questions.
I also didn't think the dependent care was worth it so I never used it.
I do use the health care account though. My insurance automatically reimburses me whenever I go to the dr or get a rx. I get a direct deposit.
Thanks ladies!!
I have no idea if I missed it for this upcoming year but probably did because I think most of our benefits stuff is in November.
The whole double paying does sound like a bit of pain but 28% of $5000 is not chump change. Can you submit multilple requests for reimbursments through out the year? I imaging that getting a lump sum check at the end of the year would be nice too.
Maybe I should look into the health care one too. It never felt like it was worth it before. Really didn't have many medical expenses but with all of Gabrielle's doctor's appoinments (and co-pays) and my contacts, it might be worth it.
What other items are elgible? It looks like a lot of OTC are but you need prescriptions?
Make a pregnancy ticker
Yes, you can submit throughout the year for reimbursement. For my healthcare one, they have even given me a visa debit card to use for expenses. I didn't use it though, I'd rather put it on my CC to get my points!
It would definitely be worth it for medical as well - copays, Rx, contacts!! I think it is new this year that you need an Rx to use it for OTCs. Keep track this year, and then you'll be able to put in for it next year. Definitely be conservative, since you can't get the money back.
It is really not a big deal w/the "double paying" - especially since you do get it back, and it is tax-free dollars. Yes you can submit multiple requests. I used to do it every 3 months or so for my medical FSA, but the lump sum will work better this year.
Eligible expenses:
http://www.flex-plan.com/elgexp.aspx