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Can one qualify for the child care tax credit if they have a DCRA? I put $5k in my DCRA. TT is giving me the $2k credit. Total expenses were $10k.
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Can one qualify for the child care tax credit if they have a DCRA? I put $5k in my DCRA. TT is giving me the $2k credit. Total expenses were $10k.
Simple answer: No. But, you might qualify for a limited credit. But $2000 is an error.
There is a $3000 limit on qualifying expenses for one child or $6000 for two or more. So, with $5000 of dependent Care benefits (DCB or DCRA), you may only count $1000 of expenses (if you have 2+ kids). So, your credit will be $200-$350.
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