- Do you have any Dependent Care Expenses entered on your return?
- Have you tried filing again since the initial reject?
- If the federal is rejected, the states will automatically reject.
Also, this wouldn't affect my ability to take advantage of dependent care FSA benefits from my employer right? That's completely separate?
Yes, this would affect your ability to take advance to the FSA benefits, and it is not completely separate.
There is no reason to use an FSA if you are not claiming the Child Care Credit. When you have an FSA, it is reconciled on your tax return. If you do not have the child care expenses to show that is what the FSA is used for, the money from the FSA is taxable and added to your return as income. You are getting no benefit from having the FSA. If you are not claiming the child and the associated child care on your return, there is no reason to have an FSA.
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