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Can I withhold $5,000 of pre-tax dependent daycare and have my wife do the same to withold a total of $10,000?
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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.
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What if I spend over $10,000 a year in childcare? I don't plan to have any excess.
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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.
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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.
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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?
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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?
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<<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.
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Thank you so much I appreciate your help so we can make educated decisions.