- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
Indeed, as explained above by Bsch4477, if there is only one child the limit for the Dependent Care Credit is $3000 and if it is more than one child, the limit is $6000.
The FSA funding listed on the Form W-2 was pulled pre-tax and that needs to be reconciled with care expenses before any calculations of the Dependent Care Credit. The IRS does not give you an option to choose, it will calculate the FSA funding first.
So even though you did not get an additional Dependent Care Credit, you did need to complete that section to reconcile that the FSA funding was used for qualified care expenses. If it is not documented, that money becomes taxable income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 17, 2023
5:11 PM