Since this is going to be our first year worrying about taxes associated with Sam’s birth, I need to find out if taking the Dependent Care Account option is better than the Government Dependent Care Tax Credit or vice versa.
If THIS worksheet is correct, it looks like the Government Dependent Care Tax Credit is going to be the best option for us in our specific tax situation.
But looking at THIS, it looks like the Dependent Care Account option would net us over $600 since it reduces our taxable income.
I need to find someone to talk to about which is really the best for us. I only have until Friday (my work's deadline) to figure this out.
Like normal taxes aren't bad enough, but I have a small window of time to determine which is going to be best for us.