Hello,I filed my tax return last year with TurboTax and the software recommended that I consider a flexible spending account for my day care expenses instead of taking the $960 maximum credit I receive for my two children. We are in the 28% tax bracket and will pay over $7000 next year in day care expenses for my two children. It definitely seems to me that I can keep more of my money if I use the FSA but want to know a few more things about it. I know about the "use it or lose it" rules but would like to solicit some feedback from others about any positive or negative things they've encountered with these accounts. Some questions I have are what happens if I or my spouse gets laid off? Will we have to continue contributing to this account? Is the process of filling out those darn vouchers a pain and are you reimbursed in a timely manner? Since my family's total medical expenses in a year due not trip the 7.5% threshhold for itemizing medical expense deductions, would setting up a flexible spending account for medical expenses also be prudent?My insurance open enrollment period is going on now so I'd appreciate everyone's input and hope that others can learn more about this topic.If there is an article on this site concerning this topic, can someone point me to it? I've looked in the tax topics and performed a general site search but have bben unsuccessful to this point. Thanks. Later...
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