@edhondl @pineapple32 @BillM223
I am having the same issue where my 2020 rollover is not being subtracted from Line 2 column c. I detailed my situation to @BillM223. Bill concluded that the form is not calculating Line 30 correctly and I had a Turbotax expert who is a CPA with 25 years experience. I sent her scrubbed copies of my 2020 and 2021 returns. She ran the numbers and came up with the same results that I did. She closed my case and escalated it for a Turbotax investigation. She said the bad news is that I can't file my return and she was not sure how long Turbotax with take to fix the issue with Form 2441 and relater 2020 rollover of DC FSA to 2021. So I went out and bought H&R Block DELUXE software to file my 2021 taxes.
Here is my situation. I did have DC FSA withheld from my wages in 2021 for $1200 and I had a rollover from 2020 to 2021 of $2550. So my total DC FSA available for 2021 was $3750. I was reimbursed for qualified child care expenses from my FSA in the amount of $2902 and forfeited $848. Turbotax is taking $370 subtracting the $1200 and calculating a .20 tax credit of $510 on the rollover ($2550x.20).
I entered all my qualified expenses in Line 1 Part I-this is correct
Because I had DC FSC withheld from my wages in 2021, Turbotax completed Part III:
Line 12 - $1200 Box 10 of Form W 2 is correct
Line 13 - $2550 this is the rollover from 2020 is correct
Line 14 - ($848) forfeited is correct
Line 15 $2902 correct
Line 16 $2902total DC FSA reimbursed in 2021 for my two kids is correct
Line 17 $2902 is correct
Lines 18, 19 and 20 are correct
Line 21 $10500 plus my rollover $2550 for a total of $13,050 is correct
Line 23 $2902 is correct
Line 24 - 0
Line 25 - Excluded Benefits of $2902 is correct
Line 27 - is correct (I have two kids) $1600
Line 28 - $2902 is correct
Line 29 $13,098 is correct because the would have been the total excludable amount, but I only had $3,700 to use and I forfeited $848.
Line 30 - $2550 - THIS IS NOT CORRECT - this should be ZERO
Line 31 - $2550 - THIS IS NOT CORRECT - this should be ZERO
Part II - Line 2 C - Kid 1 should be zero, but turbo tax entered $763, and for kid 2, $1,787.
Part II Line 3 and Line 6 Turbo tax entered $2550 on each line - each of these lines should be ZERO
Line 9a $2550*.20 for $510 - I should not be getting a dependent care tax credit because all of my dependent care expenses for 2021 were already pre-tax dollars from an DC FSA plan.
Do you think because Turbotax asks about the 2020 to 2021 rollover in two different places of the interview, that might be the problem?
I tried subtracting my rollover from my DC expenses ,but it did not work. Turbotax calculated another incorrect amount. This is because this is what turbotax is doing: It takes each child's expenses and divides it by the total expenses of the two children. It gets a percent, then multiplies that percent by the rollover. That is what is happening to me.
I entered in the interview for child expense for kid 1 - $868.47 and kid two $2033.80. Instead of $2902 being subtracted from these amounts Turbotax did this:
Kid 1 - $[removed].27 equal .30 x 2550 and entered $763.06 in Part II Line C - this should be ZERO
Kid 2 $2033.80/2902.27 equal .70 x 2550 and entered $1786.94 in Part II Line C - this should be ZERO
