Hi there,
My husband and I are married and file jointly. Last year our combined taxable income was $168,000. For next year, we will have one child and expect to spend $22,000 in childcare for daycare. We don't have a state income tax. We both make roughly the same amount of money. The only real difference is that I don't pay into social security (my husband does) because my government job has an MEBT that I can pay into instead. Both our employers offer a FSA for childcare.
My question is can we each put $5k toward a childcare FSA next year through our employers, or is it $5k combined for the two of us? If it is $5k total, is it advantageous for one of us to do it, or for us to split it and each put $2,500 toward our respective FSAs?
