How to Save on Your Childcare Expenses
Did you know if you set up your childcare correctly, such as using a platform like Apiari that tracks usages, handles payments, and provides receipts, you can save up to 50% of your childcare expenses? That’s right, you read correctly!
There are two ways parents can save on childcare expenses:
An employer-sponsored FSA where you contribute pre-tax dollars towards dependent care expenses, including childcare.
The Child and Dependent Care Tax Credit as part of your annual tax filing. You can benefit from this tax deduction whether or not your employer has set up an FSA program!
Paying on the books is the only way to take advantage of these tax benefits. In both cases, you’ll need to provide documentation along with the provider’s EIN number and address to claim the credit or FSA reimbursement.
Our weekly receipts and dependent care receipt requests can be used for these submissions.
If you care about your provider’s financial future…
Paying your nanny/sitter “on the books,” helps them establish a documented income history. Showing financial security will be valuable to them when they apply for loans, rent or buy a car or home.
Also, your nannies and sitters will be able to collect money in their retirement years by contributing towards Social Security each year via their tax filing.
With some planning, documented childcare expenses can be a financial win-win for everyone!