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FSA Dependent care and Child tax care credit

Forum|Forum|3 years ago
October 27, 2022
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Hi,

My husband and I pay $17,000 yearly for child care for one child. My employer is offering the FSA depending care account of $5,000 yearly. We usually split our return 50/50 so I do not want to open this account if its going to lessen the refund amount. Will this lessen our tax refund if I were to open this account for myself?

Best answer by Critter-3

It will reduce your refund however the FSA is a better option. Either you get a 20% credit on $3,000 with the child Care credit or you save approximately 30% on 5,000 through your payroll taxes.

A

Anonymous_

Employee

@Critter-3

Critter-3Answer

It will reduce your refund however the FSA is a better option. Either you get a 20% credit on $3,000 with the child Care credit or you save approximately 30% on 5,000 through your payroll taxes.