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Deductions & credits
You said "I'd like to take advantage of both the Dependent Care FSA & the CADC credit."
Be aware that the dependent care FSA reduces the amount of expenses that you can use for the child care credit, dollar for dollar. With 2 children, if you don't have an FSA, you can use a maximum of $6,000 of child care expenses for the credit. If you put $5,000 in an FSA and use it all for child care, the maximum amount of expenses that you can use for the credit is $1,000.
But the FSA is still a better deal, so you should put as much as you can into the FSA and just use the remaining amount for the credit.
‎November 14, 2024
12:34 PM