Deductions & credits

"I did not know you must use funds by 12/31"

Dependent Care FSAs (and their cousin, Health Care FSAs) are the original use-it-or-lose-it deal.

However, because of the pandemic, there have been many changes in this area. First, IF THE EMPLOYER'S PLAN WAS CHANGED, you could carry over FSA dollars for 2.5 months. Then for the whole year. Then for 2020 to 2021 to 2022 to 2023. 

So you must go ask your employer's HR/Benefits department and ask them if they amended your employer's plan. With luck, you will be able to use 2022 dollars in 2023.

As for bypassing the Child and Dependent Care section, try this. 

• Delete the box 10 amounts from one or both W-2s. Write them down if needed because we will be adding them back.
• If you have a 2441, delete it. There is junk in your internal 2441 from previous passes, and we need to get rid of it. See how-to below and then come back to the next step.
• Enter your W-2(s). Be sure to re-enter whatever was in box 10 on each W-2.
• When TurboTax asks if your company provided on-site child care, answer NO.
• When TurboTax asks if you (or your spouse) had a Flexible Spending Account to pay for child or dependent care, answer NO.
• Go to Deductions & Credits->You and Your Family->Child and Dependent Care Credit.
• Say YES that you want to work on dependent care expenses.
• "Whose care did you pay for?" Hit Continue (without choosing or adding a dependent)
• This should take you back to Your 2022 Deductions & Credits.
• You should now pass your Review (knock on wood).

Your return should have a mostly blank 2441 (which is correct). The box 10 amount(s) should appear on the 1040 on line 1e, because any amounts in box 10 that cannot be tied to qualified expenses must be added back to income. Why? Because the box 10 amount was removed from Wages in Box 1 before the W-2 was printed. 

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How to delete a form

*** Desktop***

1. go to View (at the top), choose Forms, and select the 2441. Note the Delete Form button at the bottom of the screen.

*** Online ***

1. go to Tax Tools (on the left), and navigate to Tools->Delete a form

2. delete form 2441

**return**