Hello,
With the new tax law, I see there is a possible $8,000 tax credit if you have $16,000 in eligible childcare expenses for 2 kids. Previously, we never claimed a credit like this, but instead utilized a dependent care FSA.
My wife and I have 2 kids in daycare right now.
I'm wondering if we can take advantage of both the FSA and the Tax Credit? If I expect our annual expenses to be around $24,000 (total for both), am I correct in saying that if we reimburse ourselves $7,000 from the FSA that the other ~ $17,000 in expenses are eligible for the 50% credit on up to $16,000?
I read an article stating that the Child Care Tax Credit will only be applicable to the amount that was “unreimbursable” from your FSA. It seems like I can "double-dip" so to speak.
Can someone confirm my logic? Thanks!
NK
