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PA Taxes: Child Care Credit vs. Childcare FSA. Which is better?
Hi everyone. My spouse and I contribute $5000 to our childcare FSA for our two children. We always heard that this was a better deal than taking the full child care tax credit (joint taxable income is roughly $128k). However, Pennsylvania recently expanded its own child care tax credit to match 100% of the federal credit. Can someone please do the math for me -- does the pre-tax FSA still make the most sense, or should we opt for the federal credit now that its benefit is effectively doubled with PA's match? Thanks!
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‎February 4, 2024
3:34 AM