I, too, think there is an issue with Turbotax when it comes to DCAP. DCAP money is not paid by my employer. It is pre-tax money that I set aside from each paycheck. I pay the daycare out of pocket and then file claims with my employer's benefits department to get reimbursed from the pre-tax money I set aside. This ensures the money was paid for eligible dependent care expenses.
The amount is reported in Box 10 and Turbotax adds this money to line 1 in 1040 as wages/income with a note "DCB" to mention that part of the income came from Dependent Care Benefits and so is Taxable.
Turbotax in no way is letting me fill in Form 2441 correctly to understand this is for eligible childcare expenses.
In the "Child and Dependent Care" section, hit "Update" and answer "Yes" to work on this. Turbotax only mentions that "In for us to get you the child and dependent care credit, both spouses must have earned income or be either a full-time student or disabled."
I answer none of the above since my spouse does not earn income, and it ends there.
There is no way for me to tell Turbotax this is for DCAP and the expenses and eligible and it is tax-free no matter what. This has noting to do with the child credit. It is a tax-free benefit that is already verified by my employer.
No way for me to enter the expenses in 2441 unless I file my taxes by mail.
My status is married filing jointly and the expenses are less than $2000 equal to Box 10 as I make sure I set aside what I am going to use.
I am using Turbotax premier.
HELP!!!!!!!!!!!!!!!!!!!!!!
