I am curious about the dependent care FSA vs the Child and Dependent care tax credit. It seems to me that a high income earner would have greater benefit from the FSA (up to $5k per year for married filing jointly), which is a pre tax benefit thereby reducing taxable income. The dependent care tax credit seems to have reduced benefits for increased income. Also for my childcare expenses in excess of $5k reimburse by the FSA I should still be eligible for at least some tax credit on top of that. Is this correct? I spend around 25k per year on child care
Submitted September 30, 2020 at 06:03PM by SithDoc66 https://ift.tt/34c7h74
