This is what I have to keep telling myself now that I am participating in the Dependant Care Flexible Spending Program at work. I'll get it back.
Here's how it works. I am allowed to set aside up to $5000 from my paycheck, tax free, to be spent on child care costs. Pretty cool, right. 5 grand tax free! At the end of the day, this means that we will save about $1400 in taxes. What could be the problem?
The problem is...I don't get it back from benefits until I spend it. Therefore...for about the next 5 months, I will be spending $1000 per month on daycare, as usual. AND...Microsoft will be taking $416 out of my paycheck every month.
$416. That's a substatial amount of cash. I just got my first paycheck with the deduction and, sure enough...$208 less. Ouch.
Ouch ouch ouch.
But...I'll get it back. I'll get it back and the Feds won't get any of it!!! I'll get it back and I'm saving $1400 by doing this. It's like having a savings account that gives me 28% interest. Actually...it's not like that. It's my money, I just get to keep more of it.
To do this, however, I just need to spend the next 5 months eating Ramen and Mac and Cheese.
Friday, January 15, 2010
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