TY2020 -- Turbotax is adding back my unused amount to taxable income.
I had contributions of $2,692 towards the dependent care FSA. I see this amount on W2 box 10. Due to Covid we only used up $2,148 towards the dependent care and were only able to get reimbursed for the same.
Now when I enter the $2,148 as expenses in TT towards the Child and Dependent Care Credit, TT is adding the remaining amount $544 back to the taxable income.
Isn't the contributions to the dependent care FSA supposed to be excluded from the taxable income? Why is this happening?
