回複：thanks. one more thing

(I don't know the answer if the $500 was the money your employer paid you as an extra. But might be the same. The same as most of the people do, I select a certain amount FSA, up to $5000 each year. Each paycheck will be deducted some for the whole year. And before the March of next year, I can request checks anytime from FSA based on my daycare expenses)

Yes, you can only claim $2500 (assume you have only one child) when you fill your return.

If the check you got is the $500 from your FSA, it doesn't matter which year you get it. That's your money that has been deducted from your paycheck in 2007 (is that right? You just took back that part of money.

I think for your case you need to fill in the 2nd page for 2441 form to see how it works. The $5000 is the maximum amount for married couple w/one kid. In this form, it will compare the normal $3000, the real expense etc with the FSA limit $5000 in order to determine how much you can claim in the 1040.

That's my understanding based on my past experience. Please let me know if you find anything incorrect.