A Tax-Smart Way to Lower Child-Care Costs.

The article from Kiplinger Personal Finance discusses how parents can lower child-care costs by utilizing a dependent-care flexible spending account (FSA). This account allows parents to set aside up to $5,000 a year in pretax money for various child-care expenses, such as babysitters, before- and after-school programs, and summer day camps. The article also highlights the eligibility criteria for a dependent-care FSA, the contribution limits based on tax-filing status, and the importance of using up the funds by the end of the year to avoid forfeiting any unused balance. Additionally, it mentions the child- and dependent-care tax credit as another option to offset care expenses. [Extracted from the article]