Question

Dependent care credit and dependent care FSA?

Forum|Forum|2 years ago
January 21, 2024
2 replies
0 views

The Turbo Tax software is telling me I'm eligible for $228 in the dependent care credit when I also have a dependent care FSA. We contributed $1140 to the dependent care FSA and got reimbursed for the exact full amount. The $1140 is reported in box 10 of my W-2 and the dependent care credit menus in the software tells me to report money paid from an FSA and the provider name and address. I've done this in years past so I'm familiar with it. Why is the software calculating $228 in the credit? We're not eligible for the credit when we do the FSA and only make expenditures (reimbursements) up to the FSA contribution amount, right?

M

MayaD

You can take advantage of both the FSA and Dependent Care Tax Credit. However, you cannot double-dip. The same eligible expenses that are reimbursed through a FSA cannot also be counted as eligible expenses to claim the Dependent Care Tax Credit.

What was the total of the qualified child and dependent care expenses paid?

What is the Child and Dependent Care Credit?

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S

story10417Author

We paid $1140 for child care expenses and were reimbursed the exact amount from our dependent care FSA. This same amount is on line 10 of my w2. TT software is telling us we get 20% of this in a dependent care credit ($228) when we also got a tax deduction. I know we can't double dip. Why is TT giving us both? How do I fix this? I'm ready to file, but need this fixed because I know it's wrong. We are reporting the $1140 paid to a specific provider as the software says to. Please help.

CatinaT1

Try closing TurboTax, clear your Cache and Cookies if you are using TurboTax Online, and reopen TurboTax. You can also try a different browser.

Also, make sure you have ran all updates.

If you are using TurboTax Desktop, check for updates under the Online Tab.

[edited 2.9.24 | 11:39am]

When you are entering your W2's, there is a question about using your FSA and how much you have left at the end of the year. Ensure you have filled this in and said you have $0 left at the end of the year.

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O

Opus 17

Employee

The maximum expenses eligible for the credit is $3000 for care for one child and $6000 for care for 2 or more children, minus the amount of the FSA. For example, if you had $2000 of eligible expenses and an $1140 FSA, the remaining $860 would be used to qualify for the credit.