I am assessing my tax situation for tax year 2022 (not 2021) related to child related credits & deductions. I am confused on what can be claimed and how to reduce the tax bill as much as I can. Here is my situation:
1) Married filing jointly & both spouse work
2) Total household income: around $225,000
3) Kids under age of 13: 2
4) One kid goes to montessori school with expense around $10000 annually.
Questions:
1) Can I claim "Child Tax Credit" (usually around $2000 per child) and also use "Child and Dependent Care Tax Credit" ?
2) Let's say if I can only take advantage of one of above then can I use CTC for one kid and "Child and Dependent Care Tax Credit" for other kid?
3) Is it advisable to use DCFSA to pay for school expense or take "Child and Dependent Care Tax Credit" in tax return?
Here are the links which I referred:
https://turbotax.intuit.com/tax-tips/family/child-tax-credit/L9ZIjdlZz
https://turbotax.intuit.com/tax-tips/family/deducting-summer-camps-and-daycare-with-the-child-and-de...
