Flex Spending for Child Care

Those that are fortunate enough to have a flex spending account are likely setting aside money for dependent care costs if they have children under the age of 13. However, sometimes those child care costs are more than what was able to be paid through the flexible spending account. In this case, use form 2441 to determine if there are any deductible expenses. The credit calculated on this form applies to as much as $6000 in eligible expenses. Since the maximum amount funded through an FSA is $5000, potentially $1000 could be available for this credit. This would likely save $200 for most filers.

In addition, don’t forget that the cost of summer days camps, and just day camps, qualify for this credit. Those that could qualify include computer, theater, sports camps as well as those that focus on improving reading, writing, or study skills. Unfortunatly, those that are stricly educational in nature, such as summer school or tutoring programs, are treated as education and not as child care; thus they don’t qualify. But obviously, the cost of many of the programs that parents use to occupy their children during the summer weeks would be available for federal form 2441 and could lower the parent’s tax liability.

So remember, for this credit, name, address, federal tax identification number of the camp/organization is required along with the amount paid.


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