Using desktop TT for 2023 with VA State filing, I pulled down my forms to review prior to filing.
In my review, and comparison to last year's taxes (prepared by a tax professional), I noticed that our deductions were remarkably different. In looking into this year's VA state instructions for form 760, looking for deduction 101, it says:
"101 Child and Dependent Care Expenses Enter the amount on which the federal credit for child and dependent care is based. This is the amount on federal Form 2441 that is multiplied by the decimal amount - up to $3,000 for one dependent and $6,000 for two or more. DO NOT ENTER THE FEDERAL CREDIT AMOUNT." (Emphasis added by poster, source: https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2023-760-instructions.pdf)
However, in TT desktop it is actually entering the value of the federal credit amount. Which as stated above is not right. How does this get fixed? This will be the difference between me paying the state and getting money back.
