This question will be for 2019 taxes. As I’m doing benefits for work for next year. For the dependent care credit, I understand it’s a maximum of $3,000 per child. We have 2 children. One we will only spend about $600 next year on the oldest child and $8,320 for the youngest child. Grand total of $8,920. For child 1, we can only write off her $600. For child 2, we can only write off $3,000. Total write off of $3,600. If we were to sign up for the FSA dependent care for a maximum value of $5,000 how would this work.
1) We claim the $5000, and then at tax time in 2019, claim an additional $1,000 since we are claiming 2 kids with daycare?
2) We claim the $5000, and then at tax time we get taxed on the difference between what we really paid per child ($3k and $600) so 1400 of the 5k we paid will be taxed since only 3k per child max.
Or am I missing something here. Just want to make sure we sign up for the proper benefits. Our income together will be around 110k (pretax and prebenefits)
