Many fortunate parents have TWO choices when it comes to covering child-care costs: They may pay these expenses via their company's flexible spending account, OR they can claim a dependent-care credit on the tax return. Which is the better deal?

Far and away, the spending account. The money you put into an FSA is substracted from your paycheck BEFORE any taxes are calculated - including the 7.65-percent Social Security and Medicare taxes. Whatever your tax bracket, the savings are worthwhile on the maximum $5,000 in your FSA. Add in savings on your state taxes, too. If your expenses are high, you may use the credit as well.

If you don't have a flexible spending account arrangement at work, then it makes sense to take advantage of the child-care tax credit. You can take a credit for 20 to 35 percent of up to $3,000 in child-care expenses for one child, up to $6,000 for two or more, but there are income limitations on how much you can get.

What's the best way to save on your taxes? Talk it over with the knowhow people at G M Hietpas CPA, LLC.