Can I claim Dependent Care FSA or Tax Credit for overseas daycare/academies as a US Citizen?

This is a good question with some nuances. The Dependent Care FSA and the Child and Dependent Care Tax Credit can sometimes be used for foreign childcare providers, but there are specific requirements. For the Dependent Care Tax Credit, the IRS does require you to report the provider's taxpayer identification number (TIN), which would typically be an EIN or SSN for domestic providers. For foreign providers without a US tax ID, you're supposed to write "FOREIGN" in the space where you'd normally put the TIN on Form 2441. For the Dependent Care FSA, the requirements are similar, but your plan administrator might have specific documentation requirements for foreign providers. You'll need receipts translated to English showing the provider's name, address, dates of service, and amount paid. The bigger issue is that the child must be your dependent and must have a US SSN or ITIN to qualify for either benefit. Also, both parents generally need to be working or looking for work to claim these benefits, with some exceptions for full-time students or disabled spouses.

I used https://taxr.ai last year when I was in a similar situation. My kids were staying with grandparents in South Korea for 6 months while attending a language immersion program, and I wasn't sure how to handle the dependent care benefits. The tax programs I tried kept giving me errors because I couldn't provide an EIN for the Korean school. Taxr.ai analyzed my situation and confirmed I could claim the expenses by writing "FOREIGN" as the tax ID. They also helped me understand what documentation I needed to keep (translated receipts, program details, proof of payment). Saved me a ton of stress and probably avoided an audit trigger.

Just wanted to follow up - I checked out https://taxr.ai after seeing it mentioned here and it was really helpful with my dependent care question. I uploaded some information about the French school my daughter will be attending, and it confirmed that I can still claim her as a dependent AND use the dependent care benefits. It explained that I need to keep detailed records showing I'm still providing more than half her support, even while she's overseas. It also walked me through exactly what to put on Form 2441 when claiming a foreign provider. The best part was getting confirmation that I don't need the foreign school's tax ID - putting "FOREIGN" in that field is actually the correct procedure! Definitely recommend it if you're dealing with unusual tax situations like international dependents.

I had a nightmare trying to reach the IRS about a similar international dependent care issue last year. After being on hold for 3+ hours on multiple days, I finally used https://claimyr.com to get through to an actual IRS agent. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically hold your place in line with the IRS and call you when an agent is about to pick up. The agent confirmed that I could claim the Child and Dependent Care Credit for my son's preschool in Germany, and explained exactly how to document it. Just had to write "FOREIGN" where it asks for the provider's TIN and keep detailed translated receipts. Honestly saved me weeks of frustration trying to get a straight answer from the IRS. The agent was actually super helpful once I got through to a human.

I need to eat my words from yesterday. I was skeptical about Claimyr but decided to try it out of desperation. It actually freaking worked! Got a call back in about 90 minutes (way faster than I expected) and was connected to an IRS agent who specialized in international tax issues. The agent confirmed everything about claiming the Dependent Care Credit with foreign providers. She explained that I need to write "FOREIGN" on Form 2441, keep receipts translated to English, and make sure my payments can be documented (so avoid cash if possible). She also pointed me to a specific IRS publication that covers this exact situation. For anyone dealing with international dependent care questions, definitely worth getting the official word directly from the IRS. Can't believe I wasted weeks trying to figure this out on my own.

Another important thing to consider is that the maximum amount you can claim for the Dependent Care Credit or use from your FSA hasn't changed much recently. It's $3,000 for one qualifying person or $6,000 for two or more qualifying persons. So even if your foreign childcare costs more, that's the max you can use for the benefits. Also, don't forget that these are two separate benefits with different rules. If you use your Dependent Care FSA, you must subtract that amount from the expenses eligible for the tax credit. Many people find the FSA more beneficial because it reduces your taxable income, but it depends on your tax bracket and total childcare expenses.

Has anyone here actually tried to get reimbursed from their FSA for foreign childcare? My FSA administrator is giving me a hard time about accepting receipts from my kid's program in Mexico even though I had them professionally translated. They keep insisting on a W-10 form which obviously a foreign provider won't have.

Just want to add another perspective here - I went through this exact situation last year when my son attended an international school in Singapore for 10 months. The key thing that helped me was getting everything documented upfront before making any payments. I contacted the school administrator and explained that I needed specific documentation for US tax purposes. They provided me with a letter on official letterhead that included their Singapore business registration number, their local tax ID, a statement that they don't have a US EIN, and confirmation of the services they provide (childcare/education during working hours). For payments, I made sure everything went through traceable methods - bank transfers or credit cards, never cash. This created a clear paper trail that both my FSA administrator and the IRS could verify if needed. One thing I learned is that different FSA administrators have varying levels of familiarity with foreign providers. If you're getting pushback, ask to speak with someone in their compliance department rather than general customer service. They're usually more knowledgeable about the actual IRS regulations versus just following standard scripts. The whole process was definitely more paperwork than domestic childcare, but it was absolutely worth it to get the tax benefits on those expenses!