daycare tax savings

Hey Group,

I have two children in daycare at an expense for $1,500 per month. My wife, a teacher, makes less than 40k per year. She nets around $500 per month after daycare expenses but does hold great benefits for the entire family. I make enough to put us in the top tax bracket but have no benefits.

All of this in mind, am I benefiting enough on the tax side to make it worth my wife's time to work? Or, should she stop and allow me to claim her as a dependent and then pay for insurance?

I appreciate any thoughts.

Rhart1816,

When you and your wife file a joint tax return, she does qualify for a dependent exemption ($3,500 for 2008).

Does your wife's income also pay for the great benefits?

How much would you need to pay for insurance?

Teacher's tend to have secure positions. Do you?

There is a book, Women Leaving The Workplace, from several years ago you may find interesting reading. Check your library to see if it is available. Or here it is at Amazon.com: http://www.amazon.com/s/ref=nb_ss_gw_0_13?url=search-alias%3Dstripbooks&field-keywords=women+leaving+the+workplace&sprefix=women+leaving

clydewolf,

My wife's benefits are 100% covered by her employer, with a $300 per month "family plan" that she does pay for. So, we pay $300 total per month for "top shelf" insurance for the entire family and that does not go up should we have additional children.

Insruance for the entire family would be in the 1100-1300 per month range as a ballpark otherwise, but would not be as good since we would be getting on our own or with a small group.

I am self employed but stable. However, its hard to imagine many jobs being as secure as a teacher.

I will check out the book. Thanks for the response and any other feedback you may have is welcome and appreciated.