Child and Dependent Care Tax Credit vs. Child Tax Credit Both of these federal credits support working families with young children, and with similar names it’s no surprise they’re often confused. The Child and Dependent Care Tax Credit is aimed at supporting families to offset the costs ass...
You may not use the child and dependent care credit for expenses that were reimbursed by your employer or that you paid with pretax dollars, including funds held in aflexible spending account (FSA).10 In some cases, using an FSA—if one is available through your employer—provides a larger...