There appears to be an issue with using the carry over of FSA funds to calculate a Child and Dependent Care Credit in the subsequent year. This appears to be a case of the "law of unintended consequences" by Congress.
I have recreated the issue and have drafted an investigation on this subject to be forwarded on to whomever.
I must admit that at this late date, it may be unlikely to have a resolution by April 18th. This leaves you two choices (well, three):
1. File an extension and pay any tax you think you would probably owe anyway (if any). e-file when the resolution is announced.
2. If you have the CD/download software, override line 3 on the 2441 to set the carryover to zero (we can talk about this if this is an option). Note, however, that overrides may prevent you from e-filing.
3. Other...enough said.
If you are expecting a refund anyway no matter how this issue turns out, then #1 will be the fastest to get it.
@Tag104
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