Deductions & credits

You should have the full $5,000 of dependent care benefits (DCB) tax free since it was used for dependent care. When I do a test of $110,000 in wages including the DCB and $10,000 in expense ($5k for each of two children) I receive the full tax free benefit as it should be.

Review your W-2s to be sure you have selected the right taxpayer for each one (if you are married) and review the dependent care section to be sure you have entered the correct child care expenses. When I review my 1040 and Schedule 3 you can see the results below. 

Using the Tax Tools:

• To find Tools: 
  1. Sign into your TurboTax account and open or continue your return. 
  2. Select Tax Tools in the left menu. 
  3. You'll find Tools beneath Tax Tools.
  4. Select View Tax Summary
  5. Select Preview My 1040 (left black panel)