I have this benefit through my job and I've always been deeply confused by it, so I really appreciated the writeup. What do I have to do to get the $5k indexed to inflation?
I wish we could! Because of the weirdness in how it was created, there’s no inflation update and Congress would have to pass a special fix (probably) to make one.
Whoa! I had no idea a dependent care FSA couldn't be used for the reasons you listed. Spot on that eligibility should be expanded. Digging in on the eligibility website, I was surprised at the way they phrased daycamp and preschool cost eligibility though? It looks like it could be used even if a parent doesn't work?
As I understand it, the lower-earning spouse has to have earned income or be disabled, or a full-time student, or looking for work to use the DC FSA. My understanding is that being a full-time stay-at-home mom with no earned income would disqualify you for using DC FSA money (although of course the tax code is tricky, so open to finding out I am wrong - it works a little differently than the childcare tax credit though….)
I have this benefit through my job and I've always been deeply confused by it, so I really appreciated the writeup. What do I have to do to get the $5k indexed to inflation?
I wish we could! Because of the weirdness in how it was created, there’s no inflation update and Congress would have to pass a special fix (probably) to make one.
Whoa! I had no idea a dependent care FSA couldn't be used for the reasons you listed. Spot on that eligibility should be expanded. Digging in on the eligibility website, I was surprised at the way they phrased daycamp and preschool cost eligibility though? It looks like it could be used even if a parent doesn't work?
As I understand it, the lower-earning spouse has to have earned income or be disabled, or a full-time student, or looking for work to use the DC FSA. My understanding is that being a full-time stay-at-home mom with no earned income would disqualify you for using DC FSA money (although of course the tax code is tricky, so open to finding out I am wrong - it works a little differently than the childcare tax credit though….)