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Subject:  Dep Care credit vs Pretax acct Date:  3/25/2013  1:31 PM
Author:  Mosquito7778 Number:  118146 of 132702

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.
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