My wife and I contributed $10k to dependent care FSA in 2023. We spent >$10k in child care for a child in 2023. We have claimed back $10k using the child care expense. However, the dependent care FSA limit is $5k per family in 2023. The TurboTax 2023 Premier seems not correctly to handle my situation. After I input my child care information, in Form 2441, line 12 is $10,000. Line 14 (If you forfeited or carried over to 2024 any of the amounts reported on line 12 or 13, enter the amount. See instructions) is ($10,000). Line 15 is 0. Line 25 (Excluded benefits) is 0. Line 26 (Taxable benefits) is 0. Additionally, I got $600 tax credit from eligible dependent care expenses of $3000 for a child. This seems to be too good to be true. I don't need to treat extra $5000 overcontributed money as the taxable income (as form 1040 1e is 0) and also get the child care credit. Is there something wrong with TurboTax 2023 Premier?
In my understanding, line 14 should be 0 while line 15 should be $10,000. Lines 25 and 26 should be $5000 and $5000, respectively.
Please let me if my understanding is correct. Thanks.
