Why does the government only allow $5,000 for Dependent Care FSA plans?

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Why does the government only allow $5,000 for Dependent Care FSA plans?

Why does the government only allow me to contribute $5,000 for Dependent Care FSA plans? Combined, child care for my two kids is $24,000 a year out of pocket?

2006-11-13 05:38:21 · 2 answers · asked by BAM 7 in Business & Finance ➔ Taxes ➔ United States

2 answers

Because that's what they decided to allow. When they give a benefit, they often set limits on it. $5000 tax-free is better than nothing tax-free.

Child care expenses have definitely gotten high.

For the excess over what's in the FSA plan, you might be able to get a child care tax credit that will help you some.

2006-11-13 06:00:50 · answer #1 · answered by Judy 7 · 0⤊ 0⤋

Ask your congressperson.

2006-11-13 06:00:08 · answer #2 · answered by Wayne Z 7 · 2⤊ 0⤋