Can I use both the Child Care Credit and the Dependent Care FSA in one tax year?

[rossmacmurray]

Two married parents, 1 child age 5.

Three childcare providers in 2017.

1)  Nanny paid $4,489.39, paid partially with $4,400 in FSA funds.

2)  Pre-School provider paid $1,950.

3)  YMCA after-school care paid $2,244.

AGI of parents in $250,000 range for 2017.  Typical $5,000 FSA amount was reduced to $4,400 by FSA administrator due to income.

[DianeW]

Yes.  If you pay more than the Dependent Care Benefits (DCB), then the excess will be allowed to be used for the child tax credit. By completing the child care information this will prevent the DCBs from being taxed and provide for the additional credit from the additional expenses. 

Both spouses must be working or attending classes full time or be disabled. The expense allowed is the greater of the lowest earnings of you or your spouse.

Please use the instructions below to enter your child care expenses.

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