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Financial Planning / Tax Strategies
|Subject: Re: Dep Care credit vs Pretax acct||Date: 3/25/2013 5:27 PM|
|Author: Mosquito7778||Number: 118153 of 125435|
Thanks for the quick replies.
I just looked it up and MN dep care credit has an income limit of just $37,950 so no help for me there.
I agree that knowing the exact cost a year in advance is unlikely.
Determining the amount in January for a preschool that might not start until September is hard. For the last few years I have elected an amount based on the Jan-May amounts and then when I know if/what the next term will be I can increase the amount. I have been able to get the pre-tax account amount pretty close to the total, and than use the care credit for what lttle remains.
I just wanted to be sure I wasn't missing anything, given that our relatively low income tax rate is close to the care credit rate.
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