How I can handle this scenario in Turbo Tax:
Employer's FY goes from July to June. In 2020 FSA selected with 2K (July 2020-June 2021). Child turned 13 on October 2000. All 2K childcare FSA was spent prior to child's 13th birthday in 2020. Employer deducts from paycheck all 2K in equal amounts through the entire fiscal year. So, no payment for childcare was made for 2021, but the deductions continue until the end of the FY (June 30, 2021). Because of this 2021 W-2 shows 1K in Dependent Care Benefit.
When entering the W-2 information, Turbo Tax asked if any money was left on the account at the end of the year, which is "no' because all was spent in 2020.
Turbo Tax, under Personal Deduction and Credit (You and Your Family section), asked to review "Child and Dependent Care Credit". It asked "Did you pay for child and dependent care in 2021. Which is "no", since all payments were done in 2020.
Any Idea how to enter information in Turbo Tax to reflect what happened?
