Folks:

Clients have 2 children, each receiving childcare costing $10,000+, all properly entered in Screen 33.1 and 33.2.  Dad has deferred $5,000 into his employer's FSA (which is reported in Box 10 of his W-2).  Here is Part III of their Form 2441:I cannot figure out why Line 29 is $1,000.  I mean, of course I understand the math, but its basically saying that you can't use the dependent care credit if you have an FSA, but that isn't so.  As long as you have enough expense in addition to the FSA-paid expenditures, you can use the credit.

Am I misunderstanding?  Doing something wrong? 

Micah