topic FSA Dependent care and Child tax care credit in Get your taxes done using TurboTax

FSA Dependent care and Child tax care credit

keelei24 — Tue, 10 Mar 2026 06:17:56 GMT

Hi,

My husband and I pay $17,000 yearly for child care for one child. My employer is offering the FSA depending care account of $5,000 yearly. We usually split our return 50/50 so I do not want to open this account if its going to lessen the refund amount. Will this lessen our tax refund if I were to open this account for myself?

Re: FSA Dependent care and Child tax care credit

Anonymous_ — Tue, 01 Nov 2022 17:01:58 GMT

@Critter-3

Re: FSA Dependent care and Child tax care credit

Critter-3 — Tue, 01 Nov 2022 18:22:21 GMT

It will reduce your refund however the FSA is a better option. Either you get a 20% credit on $3,000 with the child Care credit or you save approximately 30% on 5,000 through your payroll taxes.