If you are employed by one company or another, consider taking advantage of a Flexible Spending Account, if it is offered. These special account plans are also sometimes called "Cafeteria Plans." They allow you to put aside $5,000 in pre-tax income to pay for qualifying childcare or healthcare expenses. This income cannot be taxed (section 125 of the IRS Code) and is not counted as income when applying for SSI (Social Security) benefits.
We use my husband's Flex account to pay for things like Music Therapy for our son, dental woes, and my prescription co-pays. At the beginning of the calendar year, the company puts aside up to $5,000 (whatever amount we have chosen) in an account. So theoretically, we could use the whole $5,000 right away. Over the course of the entire year, the divided amount is deducted from my husband's paychecks. So, if we have opted for the entire $5,000, my husband's paycheck would be about $200 less per pay period. But we are still getting that $200, just in another account and tax free as well.






