Box C contains the amount in EXCESS of what you elected in your dependent care FSA, not the $2,500 or whatever was pre-taxed. In my case, the total that I spent on daycare last year was $4,045. The amount of that in excess of the $2,500 is $1,545, which is what turbotax put in box C. However, since I don't qualify for the dependent care tax credit, that amount is irrelevant and should not have been entered on the form 2441. There should be an amount in that box ONLY if you qualify for the credit, in which case the box at the top of the form would be checked and none of us would have had this issue in the first place. This is a turbotax error, not an IRS error. The amount in box C triggered the box at the top of the form needing to be checked and thus the rejection of the return. I'm guessing that is the case for a lot of you. If you haven't had your returns rejected 6 times, I urge you to try filing with H & R Block. It certainly can't hurt, and it will probably be free for many of you. The only reason I had to pay for turbotax was because I needed to file a form to get the retirement savings tax credit. That form is free with Block.
