Do you have a flexible saving account for dependant care? Child & Dependent Care Credit - Limit with ER Benefits Although there are expenses in excess of the $5,000 of dependent care benefits, there is no credit when the dependent care benefit exceeds $3,000. The reason for this is that the maximum allowable expenses that can be used for the credit is $3,000. You have actually received a tax benefit for a total of $5,000 in expenses by using the dependent care benefit. Therefore, there is no expense that remains allowable for the credit. The amount of the dependent care benefit disqualifies you from the child tax credit. Lines 28 - 32 of the Form 2441 will show this. If you have, for example, a dependent care benefit amount of $2,000 with the $7,169 of expenses, only $1,000 would be allowed for the calculation of the credit. The IRS does not allow the maximum dependent care benefit of $5,000 plus an addition of the maximum credit amount of $3,000 for the child. The dollars used for the benefit and the credit are overlapping. Generally speaking, depending on the level of your income, the $5,000 in dependent care benefit is a better deal for an individual than the credit.

Partist, I find it interesting that you consider tax deductions a form of entitlement. I guess I see them as an attempt at social engineering where the gov't is trying to reward certain behaviors. (i.e. having kids (read future tax payers), donating to charity etc) I would like to see a new flat tax system but I would be against the removal of all deductions from the current system based on the fact that eliminating deductions would give the gov't more money that it would leverage to get into more debt. I don't want to make this a political debate because I don't currently agree w/ the politics of either party. Either way, we will never see a tax system that does not have deducitons or loop holes. D's and R's reward their constituents by changing the loop holes to favor their side. Politicians would loose too much power if they weren't allowed to put loop holes in tax laws. Brining this back to the original discussion, if we live in a society that is going to have a social engineered tax system that favors certain activities, I believe that having children and education are some of the activities that should be favored. There would be severe economic issues that would arise if we faced a decreasing population or a decreasing level of eduction of the population. If you want to get rid of entitlements, I'd like to start w/ getting rid of Fannie Mae and Freddie Mac. Then we could eleminate the coorporate welfare we are doling out to AIG, GM, Citi and the others. Once that is done we could shake down the dept of defense for their waste (they may be the least efficient organization in the world). After that we would need to do something about healthcare inequality where our taxes pay for lifetime healthcare of federal and state workers but almost no private companies offer that benefit. I think our quest for elemination of entitlements should start there and not with working parents trying to find suitable daycare for their children.

I know it is unpopular to those with low income to be hit with a flat 10% income tax but consider this. I have seen that people are more invested in something and the outcome when they have a personal investment. If you are paying 10% of your hard earned income as Federal income tax, you will be more concerned about how those dollars are spent. You will tend to vote more, take the time to research where the money is going, etc. . . because of the impact it has on your income. It truly is your government and your country when you own part of it. I say this from a perspective of helping those in need and seeing the difference between those who have no problem getting a hand out and those who prefer a hand up. Economically I think a flat 10% income tax across the board would surprise people with how much more revenue would come in to pay a balanced budget required to be passed and approved October 1 each year instead of pushed back until January and then again depending on the politics at the time. The tax should perform its function of supporting the government and not be used for something it is not intended to accomplish which is social reform or social adjustments. The budget should be finalized by October 1 period, end of story. No budget no government until one is approved.

The Mackenzie-Childs brand isn't "out of business" per se-- the bankruptcy was a dozen years ago, but their wares have never gone off the market. Their line was bought by a firm that had the wherewithal to handle the production and marketing. There are a number of stores, a lovely catalog and website, and department stores like Nieman Marcus and Saks Fifth Avenue carry the line. The business moved to Aurora long before the designers' farm was sold. (Article about sale: http://auburnpub.com/news/local/updated-buyers-of-mackenzie-childs-property-just-like-other-folks/article_2493296a-70a0-11e3-9080-0019bb2963f4.html) Just because it's a mug doesn't mean that it's meant for coffee. Their enamelware is similar in styling to mid-20th Century enamelware, with the capping rims and all. Graniteware mugs get hot too. It's metal! It's not insulated. It's to be expected that hot liquids will make the mug hot and then cool off fast. OTOH, for glampling and picnics, if you don't want to deal with plastic or glass, what better? Try them for cider, or lemonade cooled in a mountain spring.