From our friends at Breedlove and Associates . . .
The Flexible Spending Account Window
- Because the family missed the 30-day window for life-changing events, they were not able to enroll in their FSA program for the 2011 tax year, and therefore, missed out on $2,300 in savings.
- Instead, they had to settle for the Child and Dependent Care Tax Credit using Form 2441 when they filed their federal income tax return. The tax credit saved them $600 in 2011.
- The difference between the two tax breaks for this family was $1,700 ($2,300 – $600). That $1,700 in extra tax breaks would have paid for a lot of diapers!