@lywhite wrote:
No, I wasn't confusing the two. I know they are different credits, and I do know that the amount you put into your FSA can affect your child and dependent care credit. I did not, know, however, if the child tax credit was affected by the amount that I put into my FSA account. That's what I was asking (which you did answer, but could have done so less condescendingly!).
The child tax credit has nothing to do with child care expenses. The child tax credit is $3000 or $3600 for each child dependent on you claim on your tax return.
The child and dependent care credit (and the ability to use an FSA to pay child care expenses) has different requirements:
1. The child must live in your home more than half the year.
2. You must pay for care so that you (and your spouse if married) can work, look for work, or attend school full time.
3. The child does not have to be your tax dependent, if you share custody. But they must live in your home more than half the year. In other words, it is possible to allow the non-custodial parent to claim the child for the tax credit while you claim the dependent care expense.
4. The credit may be reduced if you have an FSA, since you can't claim a credit for expenses you already paid with tax-free money.
The child tax credit is simply a credit for claiming a child dependent. The child care credit or FSA requires that you pay for care so you can work; the two tax items are otherwise completely separate.
