We just did this for the first time this year. I did the full amount possible, taken out of my paycheck year round. It was great! Reduced our taxable income by $5000. I also did the medical costs one offered by my employer by an additional $3000.
The only downside is that you need to remember to submit documentation in order to get the money back that has been withheld from your paycheck. My employer is great at sending a couple reminders. It took me maybe an hour to gather, fill out and submit. Well worth it.
We just got a check cut to me directly from employer a couple weeks after submitting paperwork.
Yep. With current interest rates and not paying extra payments to pay off early, people can likely pay over 100% of the mortgage loan amount in interest. Adulting is hard!
EagleEyezzzzz t1_jef8m8f wrote
Reply to dependent care FSA - good idea? by c_g201022
We just did this for the first time this year. I did the full amount possible, taken out of my paycheck year round. It was great! Reduced our taxable income by $5000. I also did the medical costs one offered by my employer by an additional $3000.
The only downside is that you need to remember to submit documentation in order to get the money back that has been withheld from your paycheck. My employer is great at sending a couple reminders. It took me maybe an hour to gather, fill out and submit. Well worth it.
We just got a check cut to me directly from employer a couple weeks after submitting paperwork.