Thank you for your response. I'm a little confused about how to proceed.
In the TurboTax product, when entering the dollar amount for total dependent care expenses, it says "Be sure to also include money paid from a Flexible Spending Account (FSA) or cafeteria plan."
However, if I include the costs I paid with an FSA, it appears to be giving me a credit based on the total amount I paid in expenses, which seems incorrect. I'm never asked to provide how much FSA funds rolled over.
Due to the increased contribution amounts in 2021 and relaxed rollover policies for 2022, I carried over more than $9000 in my FSA and did not contribute any more to it in 2022. I did still have to pay for some expenses out of pocket. Am I understanding correctly that because the $9000 paid via FSA rollover is more than the $3000 credit allowed for one child, I am not eligible for the credit and should not enter those expenses at all, despite the instructions to do so? Removing it entirely also impacts my Massachusetts state refund.
