My wife and I both worked full time in 2022 and had our first child. We paid a total of $9000 in daycare costs and funded a dependent care FSA with $5000 pre-tax. This amount is reported in box 10 of my W2 (as I believe it should be). When I enter the expenses for daycare as well as both of our W2's in TurboTax I'm told that I'm ineligible for the dependent care credit. My understanding is that we should be eligible for the dependent care credit based on our AGI ($170k) at a reduced rate for the amount over the FSA (i.e. $9000-5000=$4000).
I just spent several hours on the phone with TurboTax help at different levels and was told that the $5000 entered in box 10 is only for benefits paid by the IRS. I see why they say this from the IRS definition. However, I paid this amount via pre-tax deductions over the course of the year. M employer is a very large one and I see posts on the internet about box 10 being the correct spot for this. I don't know where to go from here.
EDIT: We have plenty of tax liability so it's not an issue with the credit being non-refundable.
