In 2019, I had $5000 on my DCFSA account of which I used $2738 for preschool (all the rest I used in 2020). Thus, I don't expect any credit since this was all pre-tax money, but TurboTax still gives me $48 and a total sum of expenses $5238 (where does this number come from?).
In the first step of going through child expenses, TurboTax asks "How much did you pay for X care in 2019" and reminds to "include money paid from FSA". I entered 2737.50 (rounded to 2738) - all from FSA. Summary showed Amount=238.
In the next step (after clicking Done), "Here's what you spent on care providers", I entered details of this sum, a single entry for preschool with Amount paid = 2737.50.
Next, I'm getting the summary as follows:
Eligible dependent care expenses $5,238
Dependent care benefits from your W-2 or business schedules -$5,000
Expenses eligible for credit $238
Credit percentage 20%
Your Child and Dependent Care Credit $48
Dependent care benefits you must pay taxes on $2,500
Your expenses of $3,000 are reduced by the $5,000 from box 10 of your W-2
I have no idea where the number of $5,238 comes from. I didn't pay this much even until end of DCFSA grace period.
