Child Care Tax Credit vs. Dependant Care Account

[arch01]

more often than not the dependent care account gives you the better deal. i'm sure someone can link it, but it's like 75% of the time or something like that.

[schrodinger]

General rule of thumb is that most middle to high income households are better off with a dependent care savings account. Tax tax credit phases out at higher HHI. Sucks that its only $5k total, I wish that had gotten written as $5k per dependent.

www.smartmoney.com/personal-finance/taxes/cut-your-child-care-costs-14246/

[ijack]

DCA is a better option for most households that make a decent amount of money.

[Deleted]

Dec 3, 2012 16:46:44 GMT -5 @mrswindycity said:

Man, I wish they would up the limit, though. $5k for daycare in a HCOL any area is peanuts.

Fixed that for you