Kara- yes we do the FSA $5000 pre tax for day care. At this point we always seem to owe for taxes, never get tax return anymore. However, my taxes are confusing, it isn't just the regular W2's. My family has a family business owning property. I have to pay taxes on my portion that I "own". However, usually the income made in the year goes back into the business to better the properties. One day the properties will sell and make me some great money (or when grandma passes DH and I might sell our portion because I hate mixing money and family like this). However, right now it seems like more of a money burden because of the taxes. In the long run I will appreciate what my family is doing for us, but right now it is hard to accept paying taxes on money I don't "see".
I talked with DH today about the idea of baby #2 and the expense. He said, we can always work 4 days a week at 10 hours a day. Our work is very flexible in that sense. He said one of us can take Friday off and the other take Monday off, therefor we would only pay 3 days a week for 2 kids. That would help a bit. I was also hoping maybe we could ask his parents to take the kids 1 day a week, so we can pay for 2 kids only 2 days a week. His parents live like 30 min from us, so I would hope they can drive one way and we could drive the other direction... I don't know. But I want to talk with them before we have number 2.