This is similar to another question I found, however the answer was not satisfactory.
Idaho Form 39R, Line 6 (child and dependent care deduction), directs to worksheet on page 30 of Idaho Tax Instructions.
Here is an example of following the worksheet similar to how I followed it for my return:
1. Enter the amount of qualified expenses you incurred and paid in 2023. Don’t include amounts paid by your employer or excluded from taxable income: $6,000
2. Enter $12,000 for one or more child or dependent cared for during the year: $12,000
3. Enter excluded benefits from Part III of Form 2441: $5,000
4. Subtract line 3 from line 2. If zero or less, stop. You can’t claim the deduction: $7,000
5. Enter your earned income: $50,000
6. If married filing a joint return, enter your spouse’s earned income. All others enter the amount from line 5: $60,000
7. Enter the smallest of lines 1, 4, 5, or 6 here and on Form 39R, Part B, line 6: $6,000
The total amount of childcare expenses paid in this example is $11,000. $5,000 was paid through a dependent care FSA (pre-tax, and matches line 3 of the worksheet), and another $6,000 was paid from after tax money. However, Turbotax is entering $7,000 into my return on line 6 of Idaho Form 39R instead of $6,000. I do not think Idaho would like for me to double-dip my tax deductions. In this case, entering $7,000 on line 6 would be a $1,000 double-dip, since $5,000 pre-tax from FSA plus $7,000 deduction is $12,000, which is $1,000 more than the total childcare expenses paid in this example.
Note that I already shared my tax file with a Turbotax specialist and after about an hour on the phone, they couldn't find any errors in what I entered, and they understood the problem I describe here. Their suggestion is that Turbotax guarantees the accuracy of the return and to ignore the discrepancy I discovered. Should I file knowing there is an error in the return that is unable to be fixed?
