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Deductions & credits
The way it works is this:
You can (for 2021) put up to $10,500 into a Dependent Care FSA. This is the limit for either a Single taxpayer or for Married Filing Joint. You put in $9,000 for 2021, which appeared in box 10 on your W-2.
You can count up to $8,000 (for one child) in dependent care expenses for either the FSA distributions or the Dependent Care Credit.
You paid $19k in expenses, presumably $9,000 of which came from your Dependent Care FSA. Since this is larger than the $8,000 limit per child, you have nothing left over for the credit.
The way this works is not obvious, but this is the way it works. May I assume that this is how TurboTax calculated it for you?
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‎February 4, 2022
2:42 PM