@BillM223 I downloaded the desktop version, but it will not allow a $0 entry as an override on line 3 and still allow me to e-file. I even tried to put in $1 to satisfy the e-filing requirement and the software wants to pull in the original $241 I had entered initially. Even if I clear out all fields, expenses, payees, delete the form, and start over, it still somehow brings in that $241 (just like the online version did as I described above).
I then searched for others asking questions about Form 2441 and ran across another thread that you replied to and it helped me FINALLY figure out the issue. I had to go back to the W-2 input form and change the amount of money leftover in my FSA. There was technically money still in it but for Form 2441 to be filled out correctly I had to enter $0. That allowed me to report $241 in expenses paid to a provider and the software to correctly calculate $0 of qualified expenses.
Now the remaining issue is with lines 12-15, which should in my situation should be as follows:
12 $12 DCB received in 2021 (from W-2, box 10)
13 $241 carried over from 2020 and used in 2021
14 ($12) amount from 12 and 13 carried over to 2022
15 $241 sum of 12-14
But if I do this, it changes my qualified expenses to the $241, incorrectly gives me a credit, AND changes line 26 to $241 thus taxing me on those dollars spent though I clearly spent on dependent care.
I also found that if I override line 16 to $241 then it takes away the credit and taxation of DCB. However, that override will not allow e-filing.
I think this whole situation is a combination of a bad tax form/instructions by the IRS and TT not handling it correctly (as evidenced by this thread).
Ultimately, I'm going to have to enter $0 for line 13 (which is not accurate) so no credit is generated and I'm not taxed for DCB. While the lines will not be 100% accurate, I'm not getting taxed more than I should and I'm not claiming a credit that I'm not entitled to. Hopefully, if the IRS audits me, they'll understand this as well.
