Quote:
Originally posted by chrishaynesusa:
The government allows set asides for child care of 5k per year pre Tax. does not make up for real cost but it is something. 5k set aside pre Tax to offset 22.8k in real cost(for me). Not much of a good deal. If you are not having your company deduct the child care cost of 5k per year up front pre tax then filing later in the year for it back you are missing a huge opportunity. This drops your gross income by 5k which could drop you into a lower tax bracket for some.
I paid about $3800 last year, so it worked out well for me. If my childcare was $23k, my wife would stay at home and look after the kids, because that's practically what she earns.