Why is my dependent care credit only $200, not $1200? I had over $15k in child care costs for my two children (ages 3 and 1). I received $5k in dependent care FSA funds.

[EvanMal]

As best I can tell, I have enough income that I should be able to get a credit of 20% of $6000, so why would TT only show $200?

[Anonymous_]

Check back. I will page @Mike9241 to see if he has any input.

[Mike9241]

see a tax pro. that loan exceeds the de minimus threshold and you are subject to IRC 7872.  Treatment of loans with below-market interest rates

[EvanMal]

Something seems like it got messed up with this forum... the question was about dependent care credit and dependent care FSA, not loans.

[Opus 17]

The credit is correct.  The FSA benefit is subtracted from the overall allowable total.  If you provided care for 2 or more children, the maximum eligible cost is $6000.  Since you received a $5000 tax-free FSA, the amount of remaining  expenses eligible for the credit is $1000.  $200 is a 20% credit, which is the correct credit of your income is over $35,000.