Can I withhold $5,000 of pre-tax dependent daycare and have my wife do the same to withold a total of $10,000?

 

Deductions & credits

You can but there is no benefit for doing so ... the excess will simply be added back into your income  on the tax return so you will gain nothing.  

Deductions & credits

What if I spend over $10,000 a year in childcare? I don't plan to have any excess. 

TomD8
Level 15

Deductions & credits

If you are referring to a Dependent Care FSA, the contribution limit is $5,000 for a married couple fling jointly, or $2,500 per parent if filing separately.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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Deductions & credits

You can spend a million dollars on child care ... but the limit on the day care credit  form 2441 is $5K per the IRS regs ... so although the employers may allow you both to put $5K in the FSA it will do you no good.  

Deductions & credits

Thank you, I think this is the answer I needed. But now I have another. If we file jointly does it matter which withholds the money since we don't make the same amount?

Deductions & credits

Thank you, I think this is the answer I needed. But now I have another. If we file jointly does it matter which withholds the money since we don't make the same amount?

TomD8
Level 15

Deductions & credits

<<If we file jointly does it matter which withholds the money since we don't make the same amount?>>

 

No, not as long as you file jointly and the total combined contribution does not exceed $5,000.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Deductions & credits

Thank you so much I appreciate your help so we can make educated decisions.