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April 11, 2022
Question

Federal tax decreases after adding day care credit

  • April 11, 2022
  • 1 reply
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The federal tax declined from $1,798 to $397. Shouldn't it have increased?

    1 reply

    Employee
    April 11, 2022

    If it said "Tax Due" by the number that went down,  the amount you OWE went down when you added the daycare credit.  Would you rather pay $1798 to the IRS or would you like to pay less than $400?

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    April 11, 2022

    It does not say tax due.

    April 11, 2022

    If the tax due went down, that is appropriate, if the refund went down that's different.  The refund should have increased by reducing your federal tax by the amount of the child and dependent care credit.  Please update with additional details if you have more questions.

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