RobertB4444
Expert Alumni

Get your taxes done using TurboTax

The whole point to the credit that your employer paid you is that it is tax free.  They have entered an amount on your W2 as a tax free benefit as well as in your gross compensation.  That is wrong.

 

You are correct that the TurboTax software has this as a limitation.  Your W2 is wrong and the system isn't designed to handle that.

 

Your employer gave you $3562 in compensation out of the dependent care account.  That is something that they need to fix.

 

But @BillM223 is right - if you send in this return without matching it to the numbers on the W2 you will likely see a huge delay and a letter from the IRS.

 

The best way around this is to paper file the return if your employer absolutely will not adjust the W2.  Attach an explanation that $3562 of the dependent care benefits was included in taxable income.  Then your employer can deal with the letters from the IRS.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"