Hi there,
I was just wondering if anyone has come across a calculator or formula to figure out the changes to dependent care FSA limits (now up to $10,500, previously $5k) versus the changes in the child and dependent care tax credit. I know I can't double dip, so I am trying to figure out the best tax strategy. Thank you!
daycare FSA vs. child and dependent care tax credit
Re: daycare FSA vs. child and dependent care tax credit
You could try the personal finance toolbox. It has entries for both, so may do what you want.
Re: daycare FSA vs. child and dependent care tax credit
If you have more than one child then usually it comes down to the larger of either your overall tax burden (FICA+Fed+State) with FSA or the DC Tax Credit recovery rate which starts at 50% but has a phaseout. If you want help, and not just a calculator to do it yourself, we would need to know:Rose1987 wrote: ↑Mon Apr 12, 2021 11:40 am Hi there,
I was just wondering if anyone has come across a calculator or formula to figure out the changes to dependent care FSA limits (now up to $10,500, previously $5k) versus the changes in the child and dependent care tax credit. I know I can't double dip, so I am trying to figure out the best tax strategy. Thank you!
- # of dependents
- expected total DC expenses
- AGI
- Tax liability rates: Fed, State, if you are subject to FICA