Author Topic: Coronavirus Stimulus Aid Package  (Read 152972 times)

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #1160 on: March 16, 2021, 06:54:24 PM »
"Dependent Care Account– the dependent care contribution limit will be raised from $5,000 to $10,500"
@cgr What do you mean with "spending via this account contributes toward the Dependent Care Credit"
If it benefits even just one fellow DDFer, its worth posting it.

Online cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #1161 on: March 16, 2021, 07:01:11 PM »
"Dependent Care Account– the dependent care contribution limit will be raised from $5,000 to $10,500"
@cgr What do you mean with "spending via this account contributes toward the Dependent Care Credit"
If your employer offers a Dependent Care Account where you can contribute to (employee contributions only), then that same monies will contribute to the Dependent Care Credit, if they're deemed eligible expenses.
In other words: you can receive both the pretax and tax credit benefits.

Offline Deal Guy

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Re: Coronavirus Stimulus Aid Package
« Reply #1162 on: March 16, 2021, 09:14:27 PM »
If your employer offers a Dependent Care Account where you can contribute to (employee contributions only), then that same monies will contribute to the Dependent Care Credit, if they're deemed eligible expenses.
In other words: you can receive both the pretax and tax credit benefits.
If your employer pays 10,000 child care benefits for you, will You get 5000 back?

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #1163 on: March 16, 2021, 09:59:09 PM »
If your employer offers a Dependent Care Account where you can contribute to (employee contributions only), then that same monies will contribute to the Dependent Care Credit, if they're deemed eligible expenses.
In other words: you can receive both the pretax and tax credit benefits.
Amazing! that's different from until now when you couldn't get both. (https://www.irs.gov/pub/irs-pdf/p503.pdf P. 10 and 12)
Where in the bill could I find it?
If it benefits even just one fellow DDFer, its worth posting it.

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Re: Coronavirus Stimulus Aid Package
« Reply #1164 on: March 16, 2021, 10:25:34 PM »
If your employer pays 10,000 child care benefits for you, will You get 5000 back?

Amazing! that's different from until now when you couldn't get both. (https://www.irs.gov/pub/irs-pdf/p503.pdf P. 10 and 12)
Where in the bill could I find it?

Looks like I wasn't clear: only employee contributions are eligible for both- same as before. Employer contributions cannot also be used to claim the dependent care credit.

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #1165 on: March 17, 2021, 01:36:54 PM »
Looks like I wasn't clear: only employee contributions are eligible for both- same as before. Employer contributions cannot also be used to claim the dependent care credit.
Sorry for the ignorance.. What's called an "employee contribution"? And what tax benefits would be on it?

AFAIK deposits to a FSA is made by the employer on the employee's behalf with pre taxed money deducted from the employees payroll. And the rule was that these contributions reduced the amount of the dependent care credit.
If it benefits even just one fellow DDFer, its worth posting it.

Online cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #1166 on: March 17, 2021, 01:45:13 PM »
Sorry for the ignorance.. What's called an "employee contribution"? And what tax benefits would be on it?

AFAIK deposits to a FSA is made by the employer on the employee's behalf with pre taxed money deducted from the employees payroll. And the rule was that these contributions reduced the amount of the dependent care credit.
For both dependant care and FSA, employers can offer the account without contributing from their end. Instead, employees can contribute the amount they wish to. It's deducted from the paycheck pretax.

Offline simple26

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Re: Coronavirus Stimulus Aid Package
« Reply #1167 on: March 17, 2021, 01:53:07 PM »
Looks like I wasn't clear: only employee contributions are eligible for both- same as before. Employer contributions cannot also be used to claim the dependent care credit.
Can you contribute mid year?

Offline yosefsv

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Re: Coronavirus Stimulus Aid Package
« Reply #1168 on: March 17, 2021, 01:53:48 PM »
For both dependant care and FSA, employers can offer the account without contributing from their end. Instead, employees can contribute the amount they wish to. It's deducted from the paycheck pretax.
In other words: The employer makes the contribution from money that he deducts from the payroll, instead of contributing money above the payroll.
If I may ask, were can I find this info?
If it benefits even just one fellow DDFer, its worth posting it.

Offline Kobe Bryant

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Re: Coronavirus Stimulus Aid Package
« Reply #1169 on: March 17, 2021, 03:03:52 PM »
The Internal Revenue Service is planning to delay the April 15 tax filing deadline by about one month, giving taxpayers additional time to file returns and pay any outstanding levies. The IRS is still figuring out what the final deadline will be. The agency is considering setting the filing deadline either on May 15 or May 17. (Bloomberg News)

Online cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #1170 on: March 17, 2021, 04:20:47 PM »
Can you contribute mid year?
Last year they permitted it due to covid childcare changes, but I believe this year you need to set your contribution rate at your employers open enrollment, and it can't be changed unless you have a qualifying life event.

Offline monoso

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Re: Coronavirus Stimulus Aid Package
« Reply #1171 on: March 17, 2021, 04:29:45 PM »
Call the IRS right now. They opened half an hour ago for foreigners. Pressure them to complete processing. +1-267-941-1000
הצלחה!
Can you really pressure to complete processing? I was missing a document, I faxed it to the irs in August and when I called they say there is nothing to do but wait

Online cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #1172 on: March 17, 2021, 04:34:08 PM »
Can you really pressure to complete processing? I was missing a document, I faxed it to the irs in August and when I called they say there is nothing to do but wait
I filed a revised return for 2018 in August (paper only) and when I called in a week ago they said I should wait another month before I even ask the question of "did it get lost in the mail".

Offline simple26

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Online AsherO

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Re: Coronavirus Stimulus Aid Package
« Reply #1174 on: March 18, 2021, 10:10:58 PM »
https://www.businessinsider.com/turbotax-hr-block-accounting-delays-software-stimulus-unemployment-tax-break-2021-3

“CNBC reported that TurboTax deposited the third stimulus into the wrong account for some people”

come again?
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Offline lubaby

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Re: Coronavirus Stimulus Aid Package
« Reply #1176 on: March 18, 2021, 10:54:09 PM »
“CNBC reported that TurboTax deposited the third stimulus into the wrong account for some people”

come again?
https://www.cnbc.com/2021/03/17/turbotax-hr-block-users-report-issues-getting-third-stimulus-check.html

Offline Deal Guy

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Re: Coronavirus Stimulus Aid Package
« Reply #1177 on: March 19, 2021, 01:55:04 AM »
If your employer offers a Dependent Care Account where you can contribute to (employee contributions only), then that same monies will contribute to the Dependent Care Credit, if they're deemed eligible expenses.
In other words: you can receive both the pretax and tax credit benefits.
When someone gets Dependent Care benefits at work, it usually ends up in box 10 of the w-2, and in the past it isn't considered that you paid it, but rather the boss.
Is this year going to be different, and you will get money back?

Online yos9694

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Re: Coronavirus Stimulus Aid Package
« Reply #1178 on: March 19, 2021, 08:05:13 AM »
When someone gets Dependent Care benefits at work, it usually ends up in box 10 of the w-2, and in the past it isn't considered that you paid it, but rather the boss.
Is this year going to be different, and you will get money back?

It shows up in box 10 meaning you already got a tax deduction for that amount (not counted as income for fica or withholdings). Then you fill out form 2448 and say how much you actually paid to providers. If you've paid more than the amount on your w2 box 10 then you can usually get a credit for the excess. You cant get a credit for the box 10 amount because that's double dipping. Why would that change?

Offline carrentals

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Re: Coronavirus Stimulus Aid Package
« Reply #1179 on: March 19, 2021, 08:22:38 AM »
https://www.nydailynews.com/news/politics/new-york-elections-government/ny-unemployment-insurance-taxes-new-york-state-20210315-c47qk7xbcvd3jgukxaknfd6ju4-story.html

Hearing reports that since NYS income tax is based on Federal AGI there is nothing that needs to be done, the 10200 is by default deducted from state income.
@cgr can you confirm?
« Last Edit: March 19, 2021, 09:34:18 AM by carrentals »