FSA or Childcare Credit?

[llckll]

Hi All,

Which method would keep more money in our pockets? FSA for childcare ($5,000 max/year married couple) or claiming the childcare credit during tax time? I understand that we cannot use both methods from what I've been reading so far.

AGI = $160,000/year

We live in Bergen County, NJ.

Any other information you need please feel free to ask.

Thanks in advance.

[llckll]

After further research, it seems like a FSA is the way to go to keep more money in our pockets with one or two children in daycare.

Maximum of $5,000 for childcare via FSA for one or two children
$1,400 deduction (28% tax bracket pre-tax deduction of $5,000)

vs.

Childcare credit resulting in 20% of a maximum of $6,000 (2 children) allowed based on our AGI.
$1,200 deduction

Did I do the math correctly?