I put 10,500 to my FSA for daycare tuition and the total amount I paid for daycare is 18,000, may I get any dependent care credit this year?

[ColeenD3]

No. You already have a tax break by using the FSA. You can't get a credit for those funds paid as well.

There is a limit of $4,000 per child. Your FSA would have covered 2 children. Unless you have a third that qualifies, you can't receive any additional benefit.

[Edited 1/25/2022|5:20PM EST]

[lihui-cas-gmail-]

Thank you for your reply! This year the limit increased to 8,000 per child. And we can get 50% of 8,000 credit which is 4,000. But 10,500 FSA only helps me for saving 2,500 tax. It seems if I did not save any money into FSA I will get 4,000 credit.

[ColeenD3]

It has increased to $4,000 per child. Regardless, you can still only take the benefit of the FSA or the actual credit. If you already chose to have an FSA, then you must abide by that. It is true that if you did not have one, you could have had a credit of $8,000 for two children, so it is important to evaluate which is the better option for you. Please see the link at the bottom.

"For 2021, the American Rescue Plan Act of 2021, enacted March 11, 2021, made the credit substantially more generous (up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons) and potentially refundable, so you might not have to owe taxes to claim the credit (so long as you meet the other requirements)."

CDC FAQ