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Deductions & credits
@Opus 17 Thank you for your message. After considering it further, I decided not to use DCFSA for the payment I made to my mother due to potential complications.
I have several other expenses such as pre-k, summer school, and after-school programs that exceed our limit (married) of $5000. However, I have already reimbursed the $1500 payment I made to my mother through WageWorks. Now, I have two options:
1. Return the money to WageWorks by sending a cheque and then claim $5000 with the pre-k invoice.
2. Keep the money and claim the remaining amount of $3500 with the pre-k invoice.
Option 2 is easier, but there will be a discrepancy between my tax return (pre-k invoice) and WageWorks records. This could be a problem if WageWorks shares this information with the IRS. I don't want to create any problems for my mother.
What will be your guidance? Thank you