The maximum amount an employee can contribute to a dependent care FSA is set by the employer as long as it does not exceed the IRS maximum which is $5,000 a year for individuals or married couples filing jointly, or $2,500 for a married person filing separately. Married couples have a combined $5,000 limit, even if each has access to a separate FSA through his or her employer. The dependent care FSA maximum is set by statute and is not subject to inflation-related adjustments.
our day-care expenses are higher than the $5,000 threshold, can we also, therefore, claim childcare credit on the remainder of the expenses after claiming the first $5,000 through dependent care FSA?
No. That would be double-dipping.
