@EvanMal wrote:
Sorry @Opus 17 to bring up an old topic, but it seems to be impacting me for 2022. Could you point to some IRS documentation that states this?
As I understood it, you can fully take advantage of both a dependent FSA and child care tax credit if you have enough expenses to fully cover both. In other words, if you have more than $11000 in dependent care for two children, you can get the (full $5k in FSA) and (the full $6000 x times .2 and .35 depending on AGI)
Sorry, it never worked that way.
If you download a copy of form 2441 and the instructions and work through the form, you will see how the calculation occurs, although I don't know if the limitation is explicitly explained there.
https://www.irs.gov/forms-pubs/about-form-2441
Also see "Dependent Care Benefits" on page 11 here, which does explain the limitation in detail.
https://www.irs.gov/pub/irs-pdf/p503.pdf
For what it's worth, the FSA is far more valuable than the credit, for anyone whose income is more than about $35,000.
