I could not find a workaround in the Online product, but yes, there is a workaround in the desktop software. Line 30 on the 2441 says to not included any amount from lines 24 and 25. These lines are the excludible and deductible benefits (the box 10 amount is the excludible one). Your FSA contributions were excludible in 2020 but got carried over instead. But these are still tax-advantaged dollars so should not be used for the credit in 2021.
So remove from the entry on line 3 any amounts from the carryover. In my test case, it was 100% of the carryover, and it may be the same for you). This will cascade down through the page until none of the credit is generated by the 2020 carryover. This is your workaround.
As for the desktop software, you are paying for the software and the federal e-filing – for up to 5 people (yes, this is popular with people who do taxes for their family). The reason that the Champs and the employees here all use the desktop product is because you can see the forms at all times (since we have in essence already paid for the software). The same would be true for you.
I must confess that when you do overrides, often TurboTax will not let you e-file – I how no idea what it will do in this case. I have no way to test this.
The desktop software includes one state download, but e-filing the state is extra ($25 per state at the moment but subject to change). Take a look at https://turbotax.intuit.com/personal-taxes/compare/desktop/ for more information.
@myfriend09
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