Dependent Care FSA for 2021

[fallriverjenn]

So last year, I was eligible to change my FSA deductions to $0 weekly due to the closure of the preschool. Qualifying event. That might be a possibility for you too if that happens.

[ribollita]

I’m not planning on funding ours. My kids are school age and now there’s no option for them. It’s my understanding that a change in childcare provider/cost can be a qualifying life event so I may be able to reevaluate next year. I’m also mandated WFH now but that may change so I assume also qualifies?

[hocus2]

We're not funding it this year. We're not using afterschool and camp is very unclear to us. Sleep away is our first choice and doesn't qualify. It is unclear what camps are opening and I don't want to tie up the money.

[covergirl82]

DH and I decided not to do DCFSA for 2021. Our kids are school age, but we don't do before/after care now due to 100% WFH. We're not planning to hire a nanny next summer. Our kids will be 10 and almost 12 when summer vacation begins next year, so they don't need constant oversight, and with DH and I being able to WFH (mandated right now), I envision that even if our offices are open by next summer, we can alternate days so that one of us is WFH everyday in the summer.

We were able to change our election in spring of 2020 due to school being closed and not being able to use before/after care.

If you're on the fence, maybe just check the list of qualifying events to make sure you could enroll or drop if your needs change.

[ssmjlm]

We are not funding it. There's a thread on MMM about the same thing.

I have one school aged child. We're not using before/after care and I have no idea what summer will look like. DH and I are both WFH until further notice.

[k3am]

I had to make this decision in May, so that was fun. I was the only person in our company that elected to keep it. It didn't take me long to spend it in childcare.. DS is in private Pre-K, and DD is in a distance learning support program (aka daycare for school age kids). Adds up quickly...

[ellipses84]

In your case, I’d contribute the max since you will use it all on daycare in less than half a year. A couple caveats are if you live in a state where the Governor isn’t mandating masks or you have a high risk person in your house that may make you decide to stop daycare if rates spike. Then I might go conservative and contribute half or 2/3rds. We know way more about the virus than we did when the shutdowns first started. Daycares have been operating the whole time and are taking a lot of precautions / haven’t had a lot of outbreaks or shutdowns. Cold and flu season might be rough but I think the late spring/summer/early will be at levels like now if there’s not a vaccine yet, and you could need summer camp.

[Mimi]

We mostly use it for summer camp.  We're electing $0 right now. I was told by benefits that I can change it on the first day we use camp/child care, regardless of the pandemic.

[purplepenguin7]

I still plan on maxing mine out because I run through it in about 4 months of FT care for my daughter. Even if we are forced to shutdown again, I don't anticipate 1) being out for more than 8 months total or 2) not needing any form of childcare throughout the year. If my daycare expenses were less I might consider not maxing out the full amount, maybe doing $2-3K instead of $5k.

[jlt19]

I'm trying to work that out right now as well. If everything is similar to this past summer and this year, I do plan on sending my son to day camp during the summer full time b/c it's really hard to work with him here. I already know for sure I'll be home through at least June 1 (just got the corporate email yesterday). BUT if I go to an office after that, I'll send DD too (won't if I'm home). THEN to compound that all, I may be facing a separation or divorce in the interim, so trying to budget for something that will come out of my check beginning January but not really "owed" until June-Aug is very difficult. I hate everything, basically.

[dr.girlfriend]

We might have not done it anyway this year since DS is now in middle school, but we're definitely not doing it now.

If daycare closes again, will you guys have to hire in-home help/nanny of some kind? I think those are eligible too as long as you have a SSN etc. Never used it for anything except aftercare and camp myself though so I would definitely read the fine print.

[Susie]

I'm fully funding.  I have a kindergartener who goes to after care, and will need summer care, and a 17 month old who is in FT daycare.  I can spend the full $5k by the end of Q1.  If things go seriously wrong, I still have Q2-Q4 to spend the balance of it.  No worries there!

Earlier this year I had two in daycare, and the tuition breaks we got during lockdowns were pretty minimal.  So for that reason as well, I'm not really adjusting what I do.