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Financial Planning / Tax Strategies


Subject:  Re: Dependent Care FSAs Date:  2/26/2008  6:10 PM
Author:  ptheland Number:  99075 of 127321

1) From what I can gather, you CAN double-dip; use both the FSA to use pre-tax funds AND take a credit for the amount over that spent on child care. So, let's say you spent $7000 - you would be able to use $5000 pre-tax money on that and then also take $2000 into consideration for the child care credit, right?


First, you limit the child care expenses under consideration to $3000 for one child, $6000 for two or more. Then you subtract off any expenses paid thru an FSA. What's left is available for the child care credit.

So I guess you can get a little bit of a double dip. You can exclude $5k from income AND take a credit for the last $1k of expenses.

I'll have to leave the EIC question to our VITA gurus. I don't see it often enough to recall off the top of my head.

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