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Employees save 25% to 40% on the cost of
day care
Qualified expenses include nannies, babysitters, housekeepers, nurse's fees and registration fees to a daycare facility. The cost of pre-K or nursery school, before and after school care, and day camp also qualify. To qualify, expenses paid for day care must allow an employee or the employee's spouse (if they are married) to work or look for employment. The IRS also offers employees the option of saving for day care with a credit that the employee can take on Form 1040. |
Employees set aside pre-tax payroll deductions in this take care account to budget for the day care expenses of a dependent child under age 13.