They way Turbotax is calculating my Wisconsin Additional Dependent Care Credit for 2024 is wrong. Your software is not adding a tax credit to my state return like it should because I have a dependent care FSA.
I have one child with a total of $10k qualified expenses and a dependent care FSA benefit of $5k. You correctly calculate my federal credit at $0 because the FSA amount exceeds the federal limit of $3k.
However, the statute for Wisconsin in 2024 changed to allow expenses up to $10k for a single dependent. Turbotax is not recalculating my WI-2441 correctly and saying I also get $0 credit from the state which is plainly wrong. My state additional credit is actually $1000 (20% of the remaining $5k of qualified expenses after you account for the higher limits).
The mistake is easy to prove. If I change Box 10 on my W-2 to be $2995 for my FSA, Turbotax shows I get a $1 credit on the federal return and then you correctly calculate my Additional Wisconsin credit with the higher limits in 2024. But if I now change Box 10 to be $3000, the Wisconsin credit is completely removed. Having a $0 federal credit is causing you to not calculate the Wisconsin additional amount correctly.
Not impressed.
