Hi, we have the exact same issue. I understand that the maximum benefit is $3,000 per child and it's nonrefundable (we also have a $20k+ liability). However, the FSA is payment before taxes, so shouldn't it really only be a deduction of whatever taxes we didn't pay upfront from the $3,000?
For example:
$3,000 credit
- taxes saved by using FSA = $5,000 * effective tax rate (25%?) = $1,250
= available credit of $1,750
The reason I'm asking is because we paid all of this money upfront. My employer didn't provide any support in addition.
Thanks in advance!
