New York State's Flexible Spending Accounts - DCAA 2005 Tax Savings Calculator

Flex Spending Account, A State employee benefit that puts money in your pocket

DCAA 2005 Tax Savings Calculator

Use this form to calculate your potential tax savings by enrolling in a DCAA account in 2005, as compared to the Federal dependent care tax credit. You will need your 2003 Federal and State Tax returns to use this form.

Note: All items are required to perform this tax savings comparison



1. Choose your place of residence:


2. Enter the Number of Qualifying Dependents: (a Qualifying Dependent is a child under age 13, disabled spouse or other dependent, or elderly parent. A Qualifying Dependent must live with you at least 8 hours a day.)


3. Enter Your Expected 2005 Qualifying Expenses: For tax year 2005, the Federal tax credit can be used up to $3,000 for the care of one dependent and up to $6,000 for two or more dependents. The DCAAccount and the credit can be combined, but the total cannot exceed $3,000 for one dependent ($6,000 for two or more dependents). Or, you can use just the DCAAccount for up to $5,000, regardless of the number of dependents you claim.

4. Choose your bargaining unit:


5. Choose your tax filing status:


6. Enter your State Salary & Wages as of January 1, 2005:


7. Enter your Federal Adjusted Gross Income (FAGI) from your 2003 Federal Tax Return (From 2003 Form 1040, Line 34; 1040A, Line 21; 1040EZ, Line 4)¹ or Estimated 2005 FAGI:


8. Enter your New York Adjusted Gross Income (NYAGI) from your 2003 New York State Tax Return (From 2003 Form IT-201, Line 32; IT-200, Line 11 minus Lines 12 and 13)¹ or Estimated 2005 NYAGI:


9. Enter your Federal Taxable Income (FTI) from your 2003 Federal Tax Return (From 2003 Form 1040, Line 40; 1040A, Line 27; 1040EZ, Line 6)¹ or Estimated 2005 FTI:


10. Enter Your New York Taxable Income (NYTI) from Your 2003 Year New York State Tax Return (From 2003 Form IT-201, Line 37; IT-200, Line 17)¹ or Estimated 2005 NYTI:

Calculate Tax Savings Clear Form

¹If you participated in the DCAA program during the tax year from which these data are taken, be sure to increase this amount by any excluded amount.

Links

Federal - Internal Revenue Service (www.irs.gov)

Publication 503 Child and Dependent Care Expenses;
Form 2441 Child and Dependent Care Expenses (attached to Form 1040); or Form 1040A Schedule 2 Child and Dependent Care Expenses for form 1040A Filers.

New York State - New York State Department of Taxation & Finance (www.tax.state.ny.us)

Form IT-216 Claim for Child and Dependent Care Credit; and
Instructions for Form IT-216 Claim for Credit for Child and Dependent Care Credit.

Accuracy Statement

The information contained here in does not constitute tax advice. Amounts shown are maximum benefits. Actual benefits may vary depending on the taxpayers particular situation. Estimates are based on income and expense data provided by the applicant and Tax Laws in effect as of July 1, 2004. For a more accurate information on your specific situation, please consult your tax advisor.

A Note About Refundable Tax Benefits

The New York State Child and Dependent Care Credit is refundable. This means that taxpayers receive any credit amount in excess of New York State tax liability in the form of a cash rebate. However, the Federal Child and Dependent Care Credit is not refundable. As a result, taxpayers cannot benefit from any credit amount in excess of their Federal tax liability. Contributions to the NYS Dependent Care Advantage Account (DCAA) benefit taxpayers to the extent that they have taxable income to offset. In practical terms, most low and moderate income taxpayers receive a greater tax benefit by claiming the Federal and New York State child and dependent care tax credits.

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This Page Last Updated: Wednesday, September 15, 2004 at 2:22:58 PM