My HR person at work said that with 2 children, the dependent care pre-tax program increases from a $5000 max to a $10k max if there are two earners. It was my understanding that no matter what the cost, number of dependents or number of earners, the maximum money that could be set aside for this program was $5000. Who is correct?
Thanks!
Don
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The FSA limit is $5,000 PER EMPLOYEE. If you both work for the same employer, then that could be $5,000 each, for a total of $10,000. Of course, if your daycare expenses are less than this, the balance is taxable or forfeited.
wrote
He's wrong.
People over fund their dependent care programs on a regular basis. When that happens, you have to add the excess back to your income.
-- Paul A. Thomas, CPA Athens, Georgia
Call to the IRS said $5k max or $2500 per employee in two-earner family. Don
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