I had a dependent care FSA for 2019. Where do I enter this info? The reimbursement I received was far less than what I paid. Would I still get the Dependent Care Credit?

Im 2019 I paid about $15,000 for one child in dependent care and received only $3,750 in reimbursement. The Dependent Care deductions/credit section of TurboTax only asks how much I've paid, and asks noting about the dependent care FSA. So I put in about $15,000 and then I get the $600 credit. Where do I put in the FSA info?
VictoriaD75
Expert Alumni

Deductions & credits

The FSA information should be reported on your W-2 in box 10. You should have entered this upon entering your W-2. It does not need to be reported again.

 

Child and Dependent Care Credit

 

Publication 503

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Deductions & credits

There is nothing in box 10 on any of our W-2s. So I'm still looking for help on this. I'm also wondering where I'd enter the medical FSA information.

BillM223
Expert Alumni

Deductions & credits

The medical FSA reporting is easy - you don't report anything about the medical FSA. Really.

 

 

If you had a dependent care FSA, then the amount that your employer set aide (and withdrew from your Wages) should have been entered in box 10. You will have to ask your employer why it isn't there.

 

The $3,750 in reimbursement should have come out of that box 10 amount.

 

However, the fact that you got a $600 credit suggests that your return is not right.

 

You get a 20% credit for money spent on child care up to $3,000 for one child. $3,000 times 2% equals $600.

 

However, contributions to your FSA are removed from this $3,000. This did not happen because there is no entry in box 10. So you really need to ask your employer to what happened to your dependent care FSA and box 10. It sounds like you should have had zero credit.

 

Note that if your employer gives you a corrected W-2 with the FSA contribution, then your credit will go away. This is because instead of a credit, you get a deduction for the FSA contribution (actually, it's removed from Wages in Box 1). 

 

So if you were in the 22% tax bracket (so your marginal tax rate is 22%), this "deduction" would be $3,000 times 22% = $660 in tax reduction.

 

Sorry, the rest of the money you spend on child care is lost as far as tax benefits are concerned.

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Deductions & credits

This is super helpful, thank you! It matches what I found out as I talked to the employer that forgot to include the info in box 10. They added it, I added it to TurboTax, and the credit went away. Though, I believe I'm in the 12% tax bracket. The number for box 10 was $5000, but $1250 was left over at the end of the tax/calendar year since our FSA is on an academic year (my husband is a teacher). $5,000-$1,250=$3,750  and $3,750*0.12 = $450... so wouldn't I get $150 of the credit? Unless I'm in a higher tax bracket which I don't think we are (as I said, my husband is a teacher :).

 

Also, I do report the medical FSA as a "reimbursement" in my health care expenses, correct?

 

Thank you!