Child and Dependent Care Credit / FSA Deduction

michasiegel91 · ‎February 4, 2020

Do the credit and deduction have the same qualifying rules? Does a babysitter qualify for both or does it have to be an institution?

HelenC12 · ‎February 4, 2020

No, your babysitter qualifies and it doesn't matter is you used your FSA or paid out of pocket.

However, the FSA is pre-tax and if you deducted the maximum $5,000, you won't get an additional Child and Dependent Care credit on your tax return, even if you spent more than $5,000 for babysitting costs. That would be double dipping.

For a further explanation, click here to see the answer to a previously posted question.

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View solution in original post

HelenC12 · ‎February 4, 2020

No, your babysitter qualifies and it doesn't matter is you used your FSA or paid out of pocket.

However, the FSA is pre-tax and if you deducted the maximum $5,000, you won't get an additional Child and Dependent Care credit on your tax return, even if you spent more than $5,000 for babysitting costs. That would be double dipping.

For a further explanation, click here to see the answer to a previously posted question.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Child and Dependent Care Credit / FSA Deduction