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Deductions & credits
I wouldn't call it double dipping since any contributions that you make to a dependent care FSA cannot be used for the child and dependent care tax credit and vice versa. But you can take advantage of any combination of the dependent care FSA and the child and dependent care tax credit to maximize your total economic benefit.
The dependant care FSA limit was increased to $10,500 for 2021 but since this is less than you are spending you have a nice opportunity to take advantage of additional tax breaks.
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‎July 21, 2021
11:41 AM