I have a dependent care FSA for $5000 does that mean that our taxable income is decreased by $5000? Does it also decrease by another $1000 for the dependent care credit?

[Rachel_W]

Yes, if you deferred $5,000 to your dependent care FSA, then that money is non-taxable and your Taxable Wages in Box 1 of your Form W-2 were reduced by that amount.  

Unless you have more than one child, you won't be able to get an additional child and dependent care credit because the maximum child care expenses are $3,000 for one qualifying child and $6,000 for two or more qualifying children.  When you put your child care expenses into TurboTax it will walk you through the process of claiming that credit if you are eligible.

However, you may be able to get an additional $1,000 Child Tax Credit if you meet the qualifications.  Check out the TurboTax FAQ below for more details:

https://ttlc.intuit.com/replies/3301702