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Financial Planning / Tax Strategies
|Subject: Dep Care credit vs Pretax acct||Date: 3/25/2013 1:31 PM|
|Author: Mosquito7778||Number: 118146 of 121774|
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?
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