There's no known error with this Idaho computation.
You're correct that line 1 of the Child and Dependent Care Worksheet in the Form 39R, Resident Supplemental Schedule shouldn't include amounts excluded from taxable income.
However, look at line 3 of the worksheet: "Enter excluded benefits from Part III of Form 2441." The line 3 amount would be the computation from line 25 of Form 2441.
Has this amount from Form 2441, if there is one, been subtracted in the worksheet formula?
