Childcare Tax Benefits: Dependent Care Credit and FSA
By IRS Family Benefits Office | 6 min read
Reduce childcare costs with federal tax benefits. IRS Child and Dependent Care Credit and FSA options explained.
Working parents can save significantly on childcare costs through federal tax benefits. The Child and Dependent Care Credit allows 20-35% of qualified expenses up to $3,000 per child ($6,000 for two or more children). Dependent Care FSAs let you use pre-tax dollars for childcare expenses up to $5,000 annually. You cannot claim both the credit and FSA for the same expenses, so calculate which provides greater savings.\n\n**Related Resources**\n- [Financial Planning Tools](/tools)\n- [Budget Calculator](/budget-planner)\n- [Credit Guide](/category/Debt%20%26%20Credit)\n- [Money Saving Tips](/category/Save%20Money)