I have a DCFSA that I put $2,000 into in '19. I am also receiving 2 different child care tax credits ($2000 & $200) Am I allowed to have both the 2 credits and the DCFSA?

[Hal_Al]

Q.  Am I allowed to have both the 2 credits and the DCFSA?

A. Yes, as long as the total $ limit is not exceeded.

TurboTax (TT) will handle this on IRS form 2441.  You may only count a maximum of $6000 of child care expenses, for the credit, when you have 2 or more kids. That $6000 must be reduced but the amount of DCB/DCFSA money used.  You say you put in $2000, so $4000 is the maximum you can claim for the Dependent Care Credit.

[oconnor_colin]

Thank you for your response.  Is this this case for 1 child as well?

[Hal_Al]

Yes, but for one child the limit is $5000, not $6000.

[oconnor_colin]

Thanks!  Next year (2020) we plan on maxing out the FSA ($5000) which will limit the credits we receive. I believe it is because we did not max out the FSA this year (only put in $2000) that we also received the two credits this year ($2000 & $200). 

[KathrynG3]

The Child and Dependent Care Credit is separate from the Child Tax Credit and Additional Child Tax Credit, that work together. TurboTax will automatically calculate this for you.

It is based on the income of the taxpayer and spouse and on the age of the dependent among other qualifying factors. The maximum credit is $2,000 for dependents under 17 years old and $500 for under 19 years old. If the dependent is a full-time student, the eligibility for $500 remains until they are under 24 years old.