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Am I paying more in taxes by contributing to a Dependent Care FSA?
I have 2 dependents and paid $17k in child care expenses in 2023. I contributed $5,000 to an DCFSA, and with my tax bracket at 12%, should result in tax savings of $600. I'll get an additional credit of $200 for the Dependent Care Credit (($6,000-$5,000)*20%) for total tax savings of $800. If I had not contributed to an FSA, I would be eligible for the full $6,000*20% for $1,200 in savings. Did I lose out on $400? If so, is there a way to make any adjustments? Thanks!
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‎January 16, 2024
7:31 PM