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Deductions & credits
Thanks. I believe I just figured it out, and I am posting the answer for the benefit of anyone else who might be in this situation: If your W-2 shows an amount in Box 10 for Dependent Care benefits, and you don't tell TT about the amount you spent on dependent care, then the amount in Box 10 is treated as taxable income. Entering our dependent care expenses did not qualify us for the Child Care Credit, but it did get the amount in Box 10 out of our taxable income, which therefore increased our refunds. Moral: Be sure to tell TT about your dependent care expenses even if you don't qualify for the Child Care Credit.
March 22, 2021
1:30 PM