Thank you for providing your token.
I've looked over your return and also reviewed the instructions to the WI-2441. Per the instructions, Form WI-2441 is heavily dependent on federal Form 2441.
The reason your WI credit is calculating as zero is because your income is not flowing to the WI-2441 on lines 7 and 8. These lines come from the Federal Form 2441, Part II.
You received tax-free dependent care benefits in excess of work related expenses of $3,000. As you mentioned, you would not qualify for the federal credit in this case. Because you don't qualify for the federal credit, Part II of your federal Form 2441 is blank.
The instructions to the WI Form WI-2441 (page 3) require that your earned income amounts be pulled from Part II of the Federal Form 2441. The TurboTax programming is written based on the instructions to the form. Since your Part II is blank, your income is not transferring to the WI form. Although the WI statute was updated to reflect higher work related expenses for the child care credit, your credit is being limited based on the function of the federal Form 2441 and the instructions to the WI-2441.
