Should I use FSA to pay for childcare Oct-Dec or wait until next year (will be $1616)? Spent 3902 on childcare Jan-Sep before opening FSA, which begins in Oct.

[Anonymous]

For one part of the year, January through September, I did not have an FSA, and I paid for most of the year's childcare out of pocket ($3902). I would receive 20% of up to $3000, so $600. For the second part of the year, October through December, I have an FSA account, and will pay $1616 in childcare. I would save about $525 from using the FSA. From reading on this site and others it is clear that I cannot claim expenses paid for through an FSA account. What is unclear to me is whether I can use an FSA account for part of the year and STILL deduct childcare expenses that were NOT related to the FSA.

[Critter · Accepted solution]

What is unclear to me is whether I can use an FSA account for part of the year and STILL deduct childcare expenses that were NOT related to the FSA.

Yes you can ... look at the form 2441 to see exactly how that is computed.  In fact you can only use the FSA funds on the payments made after you started the FSA so you could not possibly recoup the entire year's payments.  And since the FSA contributions will be lost if not used you should always use them timely and not wait ... who knows what the future will bring. 

[Anonymous]

I took at look at form 2441 (a few times). Is this basically right? I can claim childcare credits on up to $3,000. Using FSA lowers the $3,000 by the amount of FSA I used. If I use $1,000 with FSA, I can claim childcare credit on the remaining $2,000.

[Critter]

Yes you are reading the form correctly.