[Em]

Quick question…
Hoping someone can explain my situation to me like I am five because pregnancy brain is really taking its toll on me and I’m having a hard time seeing which one is more beneficial.

It’s open enrollment.
I was going to enroll in the daycare fsa 5000$ per family for 2025.

Is it better to do that or claim it on your taxes? Last year I paid a little over 9k in daycare but only got a 600 dollar credit. I did not use the fsa last year.

Next year I will have two children in daycare so I expect my expenses to be in the 12-13k range for the year.

We will be a family of 4. Income around 200k might be a little less next year since I’ll be off for 12 weeks. Married filing jointly.

Any advice is appreciated. Thank you

[Rick]

Determine your marginal tax rate next year and multiple that times $5k then compare that to $600.

If you are over 12% marginal tax rate (federal and state) you will save over $600.

[Kira]

yes, you will save about 600. Go for DCFSA, I did it for years, it’s a good deal if your employer offers it (and put those 600 to kids 529’s, for example)

[Melissa]

Pretax $5k in dependent care saves you $1,500

[Author]

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