@neymancm wrote:
Based on the example provided, you're saying anything spent over what was set aside in the FSA can be considered for the tax credit? Even with one child?
One child, no. The maximum eligible expenses to apply to the credit are $3000. If you already have a DCFSA that is more than $3000, you have exceeded the eligible amount, and you can't get a credit on top of the FSA. If you pay for care for 2 or more children, the expense cap for the credit is $6000, but the maximum FSA is still $5000. So if you max out your FSA paying for care for 2 children, you can apply the remaining $1000 toward the credit (20%, or $200, for most taxpayers).
