@Hannahbeau
@Hannahbeau wrote:
they are saying that you already got a benefit for that kid via pre-taxed FSA dollars that were equivalent/similar in taxable value as the $3000 credit . . .
It's not a $3,000 credit. It's $3,000 of expenses used to calculate the credit. The actual credit, which is the actual reduction in your tax, is a percentage of the expenses, on a sliding scale depending on your income.
@Hannahbeau wrote:
. . . so now you get nothing.
You don't "get nothing." You get $5,000 subtracted from your taxable income. The actual tax benefit of the FSA also varies depending on your income, because it depends on your tax bracket. But an FSA for $5,000 of expenses gives you a greater tax benefit than the child care credit for $3,000 of expenses.
