Can I Claim Both the Dependent Care FSA and the Child Care Credit?

You can use both, but you cannot count the same expenses for both benefits. A Dependent Care FSA lets you set aside up to $5,000 pre-tax through your employer, while the Child and Dependent Care Credit covers up to $3,000 ($6,000 for two+ children) of expenses. If you max out your FSA at $5,000 and have two children, you could potentially claim the credit on an additional $1,000 of expenses. The FSA gives you an upfront tax break on contributions; the credit reduces your tax bill at filing. Most families with one child get more benefit from the FSA alone, but it depends on your tax rate and income level.