Thank you Bill for the response. I did want to seek clarification on point #3 below. I do understand the double dipping but I also intentionally structured payment to dependent care institutions so I am not double dipping. I am not using the same dependent care expenses as the source for use of FSA contributions and the source for the available tax credit. These are two distinct and separate pools of dependent care expense. Using round and hypothetical numbers, total cost of daycare for one child at XYZ daycare = $10k. I used $5k FSA contributions to pay a portion of that dependent care. AAA preschool for one child costs $8k and after-school care for 2 children cost $5k. These are the dependent care expenses for which I am claiming the dependent care tax credit for 2 children. The expenses are separated and thus no double dipping but the software still prevents the use of full dependent care tax credit on 2 dependents that I did not use FSA funds as that was specific to another dependent and her own unique dependent care institution. Does that help clarify and/or change anything in the response?
