Dear All,
I am using turbo tax for my return. Before this year, I got $1200 credit every year.
This year, my family income has a little increase, but we spend similar on the daycare (about 25k per year for two kids).
However, when I typed my info, I got the following message. . . I cannot understand why my eligible expense is only $1005 and is not longer the cap value $6000.
Based on your adjusted gross income of $300,980, you can claim 20% of your $1,005 of eligible dependent care expenses.
@jumpbaby wrote:
yes, I used roughly 5000 dependant FSA for daycare.
The FSA draws from the same set of rules/same pot of expenses. Your maximum expense eligible for child and dependent care is $6000, if you used an FSA of $4995, then your remaining eligibility would be $1005.
In most cases, the FSA saves you more money than the credit, especially if you are in a state with high state income taxes.
yes, I used roughly 5000 dependant FSA for daycare. I feel that is the answer i am looking for, but if it is ok, could you please provide some quick explanation? Thank you.
@jumpbaby wrote:
yes, I used roughly 5000 dependant FSA for daycare.
The FSA draws from the same set of rules/same pot of expenses. Your maximum expense eligible for child and dependent care is $6000, if you used an FSA of $4995, then your remaining eligibility would be $1005.
In most cases, the FSA saves you more money than the credit, especially if you are in a state with high state income taxes.