For 2021, I have W-2 earned income and my spouse is working broad with foreign earned income. He only has foreign earned income, which qualifies for foreign income exclusion for his entire earning. I put in $3000 in FSA child dependent care and used it all. But Turbo Tax Form 2441 Line 19 takes the earned income amount after federal income exclusion on the spouse, which leaves line 20 the smallest of line 17, 18, and 19 to be zero. It doesn't seem to be right. I don't believe there is limitation on dependent care FSA limitation with income threshold. The tax law also doesn't provide limitation for dependent care benefit if your spouse doesn't have earned income. I think it's a Turbo tax bug.
I tried to override box 19 amount, but it won't let me e-file.
