UPDATE: Although this post is dated 2019, it was only imported into the new forum on that day and it is actually for a prior tax season. After the tax cuts and jobs act of 2018, the comparison of FSA versus dependent care credit is much cloudier. Unless you’re in a very high tax state like California, the FSA and dependent care credit come out almost exactly equal for almost everyone claiming expenses for two or more children. Most of the time there is only a few dollars difference over the year. With one child, the FSA is still the better option. With two children, most people should make their decision based on convenience, and on whether they think they will use the entire FSA and not lose it, rather than on the net dollar amount of savings, which will be almost identical.
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First of all, the limit is $6000 when you provide care for two or more children, it is not $3000 per child. So you would be eligible for the full amount.
Second, the FSA is better for anyone whose income is more than about $20,000. By taking the FSA, you will pay the first $5000 of expenses with tax-free money. The next $1000 of expenses will be eligible for the credit. Expenses over $6000 are just costs you pay without offsetting tax benefits.
This assumes that the tax laws don't change or that any changes will take effect after 2018.
