Example FSA and credit comparison (illustrative numbers only)
These are made-up examples for a family with one child and $4,000 in care costs. Your result depends on your income and tax situation.
| Choice | Example amount | Note |
|---|---|---|
| Care costs for the year | $4,000 (example) | One child under 13 |
| Run all through FSA | $4,000 (example) | Credit limit of $3,000 is used up |
| Credit if no FSA | $3,000 x 35% = $1,050 (example) | Rate depends on income |
| Run $1,000 through FSA | $1,000 (example) | Leaves $2,000 for the credit |
| Credit on remaining $2,000 | $2,000 x 35% = $700 (example) | Plus FSA tax savings |