The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/dep-care-credit-vs-pretax-acct-30605900.aspx

Subject:  Dep Care credit vs Pretax acct Date:  3/25/2013  1:31 PM
Author:  Mosquito7778 Number:  118146 of 121219

I am trying to determine which will benefit my family most and want to make sure I am considering all the tax implications.

AGI of $55k, total dependant care expenses of $2k.

Putting all $2k in a pretax account will reduce my AGI and save me at my marginal 15% Fed rate and 7.05% MN rate = $441.

Claiming all $2k as qualified expenses instead will get me 20% back as Dep Care Credit = $400.

What am I forgetting?
Thanks all.
Mosquito
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us