Childcare FSA

[Carita]

How does this work? I have the option to do this at work, which I will gladly take, but how do I pay my DCP with it? We are looking at using an in home daycare situation. Is it as easy as writing a check, or does she need to fill out some kind of paperwork?

[spedteacher30]

For ours, we pay out of pocket, and then get reimbursed out of the account. So, I have a little over $200 taken out of each pay check (2 checks per month) and then, I submit receipts each month. Once I am a month into it each year, the money is transferred automatically into my account on pay day, so it doesn't feel like I am waiting for reimbursement. there is lag time for me with the first month of the year, which stinks since it comes in January, which is often a tight month anyway.

[Minxie]

Originally Posted by spedteacher30

For ours, we pay out of pocket, and then get reimbursed out of the account. So, I have a little over $200 taken out of each pay check (2 checks per month) and then, I submit receipts each month. Once I am a month into it each year, the money is transferred automatically into my account on pay day, so it doesn't feel like I am waiting for reimbursement. there is lag time for me with the first month of the year, which stinks since it comes in January, which is often a tight month anyway.

That's how it works for me and yes, January is the worst but the reimbursement is pretty quick thereafter. Be aware it only covers $5k so you likely won't have the full amount reimbursed (unless you are in an area with a lower cost of living.)

[spedteacher30]

The other thing is that if you are using a home daycare provider, you need to make sure she is declaring the income. I know people who didn't discuss it upfront, and then discovered that the provider was committing tax evasion, and not declaring their payments as income, and they couldn't get reimbursed.

[laurabfig]

Ours was the same- pay up front and then get reimbursed from the money withheld from my paycheck. You will need to get the tax ID number of your provider to get reimbursed. Generally my FSA has been really fast with reimbursements and they go directly into our bank account. (and feels like extra money, since you already spent it )

[Carita]

oh 5000 will be a drop in the bucket LOL, but it helps.

okay - good to know we need a tax ID number! asking for that upfront should let her know we expect she reports it...

[2lilsweetfoxes]

How I did it, several years back, was that I paid for the first month, then got my reimbursement check and just continuously used the reimbursement checks I got each month for the next month.

[LynnS6]

You'll also need a written receipt each month showing the dates and the cost of the service.