Deductions & credits

The credit is correct.  The FSA benefit is subtracted from the overall allowable total.  If you provided care for 2 or more children, the maximum eligible cost is $6000.  Since you received a $5000 tax-free FSA, the amount of remaining  expenses eligible for the credit is $1000.  $200 is a 20% credit, which is the correct credit of your income is over $35,000.