@j_orban
Good afternoon!
Your question is tricky because Congress has a tendency to change the tax laws at (or after) the last minute. I think the Build Back Better plan extends the special rules for 2021 into 2022. But, it seems that the BBB is not likely to pass the Senate in its current form, so there's really no way to guarantee what will happen next year.
For 2021, the credit is better unless your income is more than $125,000. After that it gets tricky to figure out. But the credit is 50% of child care cost if your income is below $125,000 and the FSA would only save about 33% (22% federal tax plus 7.65% social security and medicare plus whatever you pay in state tax.)
For 2022, assuming the credit reverts to the old formula, the FSA is better if you are paying for care for one qualifying child. The FSA and the credit are about the same if you are paying for care for 2 or more children, assuming you are in a state that also has a child and dependent care credit. If you are in state that does not have a child and dependent care credit and also has state income tax, then the FSA is slightly better.
If Congress changes the law and increases the credit for 2022 at the last minute, the IRS may grant a waiver allowing people who took the FSA to adjust their contributions or cancel mid-year (which they did for 2021). Or, if you pick a $5000 FSA for 2022 and then Congress keeps the enhanced credit ($8000 or $16000 of costs) you can still claim the credit for costs that exceeds your FSA.
The child and dependent credit is not included in Turbotax Online's Free version, it requires at least Deluxe.
https://turbotax.intuit.com/personal-taxes/online/free-edition.jsp#tax-forms
