Child and Dependent Care Tax Credit and Dependent FSA

Hi,

I am new to this fatherhood thing and trying to figure out the best way to set up for taxes next year. Is it possible to use the Child and Dependent Care Tax Credit on the first $3000 in daycare expenses and then use an FSA for $5000 pretax on the the additional? Or do I have to choose between the two? Total tuition cost are expected to be $17k for 2021. Any help would be appreciated!

Thank you

posted

While you cannot receive both tax benefits for the same expenses, you may be able to claim both tax benefits if your expenses exceed $5,000. If you have two or more children, you could set aside the first $5,000 pre-tax into an FSA and claim up to $1,000 of remaining expenses for the dependent child-care credit.

You can also read this TurboTax answer for more information.

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