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I found that if after entering $1 in box 10, checking student, going through the questionnaire twice and adding the carry over FSA amount, then I could go back into the Dependent Care Credit questionnaire, and uncheck the student. TurboTax online then kicks me out of the Dependent Care questionnaire immediately, HOWEVER, it does not delete the info I entered, and it recomputes 2441 as I want (except for $1 on line 12). It preserves the carry over on line 13, as desired, and recomputes the credit and taxable benefit using $0 as the spouses earned income, as desired. And it adds the carry over (plus the fake box 10 $1) correctly to 1040 line 1e.

 

So, finally, everything looks correct (except off by $1 income, but if I try to undo that, then TurboTax deletes my 2441) and I can pay the tax on the carry over dependent care FSA benefit. Hopefully the IRS won't care about the $1 inconsistency, but I guess it should be okay since it is an extra $1 of reported income.

 

While I agree with you that the tax laws have changed drastically and quickly in the past three years, that is what we customers pay TurboTax for: to keep its software up to date with respect to tax laws. It's unfortunate that we hit so many problems with TurboTax (I seem to hit one of these oddities each year).

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