Dependent Care FSA and Child & Dependent Care Credit Confusion

[kamal444]

I had dependent care FSA from my employer and also payed out of pocket for my child daycare.

My total contribution for dependent FSA was $1200. And total expenses for daycare was, $3450.

Now, I don't know if I qualify for Child & Dependent Care Credit in TurboTax. Also, how much amount should I enter there? ($3450-$1200) ?

Is it common to have both dependent care FSA and child care credit.

Regards,

Kamal

[Rachel_W]

You should enter the total amount you paid for child care, $3.450.  Yes, it is pretty common to have both dependent care and child care credit.

The maximum "qualifying child care expenses" allowed for the Child and Dependent Care Credit is $3,000 for one child, or $6,000 for 2 or more children.

If you contributed $1,200 to a FSA, and have 1 Child, your Dependent Care Credit will be calculated on $1,800 [$3,000 - $1,200 = $1,800] 

If you have 2 or more children, and contributed $1,200 to a FSA, you can take the Child and Dependent Care Credit on expenses of $2,250  [$3,450 - $1,200 = $2,250]

See the TurboTax FAQ for more details about getting the Child Care Credit below:

https://ttlc.intuit.com/replies/4395614

[kamal444]

Where do I enter the FSA contribution of $1200. I didn't see it mention anywhere and I was afraid that I might be using double credit due to this. I see the FSA in my W2, but not mentioned in box 14.

[kamal444]

Okay, I think Turbotax imported the $1200 amount as it figured out the $1800 and mentioned that my contribution based on employment was $1200. Although, it might be good to verify that figure somewhere else in the taxes.

[Rachel_W]

Yes, TurboTax automatically pulls the $1,200 from your W2 and puts it on Form 2441.