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Nov 5, 2019
9:01:56am
LaserCoug All-American
Looks like if you use your childcare FSA, you lose your childcare tax credit
but for me, it's only worth $600. In the 22% tax bracket, the FSA saves you $1100 (22% of 5000 max) on taxes so you have a net tax savings of $500. If you have more than one kid, the math is different. For 2 kids, I think you still come ahead but not as much. You have a $1200 childcare tax credit so you would see the $1100 tax savings but you can still use part of the childcare tax credit ($6000 max with 2 kids). At my income, I get 20% of the amount for the tax credit so I would see an additional $200 for a total of $1400. But at lower incomes, you get a higher percentage but the cap is always the same.
LaserCoug
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LaserCoug
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