Your employer should be taking into account the changes on your W-2. However, as stated by @Opus 17 the increase applies only to 2021, as of now. You will use what you received and be sure to answer the TurboTax questions correctly.
2020: Rules under Taxpayer Certainty and Disaster Tax Relief Act of 2020
The IRS states it as follows for any amounts that were not used and carried from 2020, which does not apply to your situation.
Temporary special rules for dependent care flexible spending arrangements (FSAs). IRS Instructions Form 2441
Section 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 provides temporary COVID-19 relief for dependent care FSAs. This legislation allows employers to amend their dependent care plan to allow unused amounts to be used in a subsequent year. It also allows employers to amend their dependent care plan to allow participants to use amounts in a subsequent year if a dependent turned 13 before the funds were used. Unused amounts from 2020 are added to the maximum amount of dependent care benefits that are allowed for 2021. See the instructions for line 13.
@sjh518
[Edited: 01/19/2022 | 11:38p PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
