Toddlers: 24 Months+
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Deduction or FSA?

Any help or information about these two possiblities would be appreciated.

My husband and I are trying to decide whether it would be better to take the child care tax credit next year or start an FSA where basically the childcare costs would be taken out of my pay before taxes. I figure we will spend no less than 7500 next year for child care for my oldest and part of the year for the baby.

Through some quick research, I believe I read that the limit for the tax deduction would be $6,000 so we wouldn't be able to claim all our childcare expenses. The following year childcare will cost us over 10,000. I'm just not exactly sure which way is the best way to go when all is said and done.

We are still doing research, but I was hoping someone on the nest has some information about the two. TIA for any advice or information you can offer.

Re: Deduction or FSA?

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