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Deductions & credits
Thanks, I think I get it now. Turbo Tax counts the $5000 I entered in Box 10 as taxable income until I enter child care expenses in the Deductions section? So the refund then goes up by $5000 multiplied by my marginal tax rate. For example only, if my Box 1 was $100k and Box 10 was $5k, Turbo Tax assumes I owe tax on $105k until I enter in my $5k child care expenses. At that point, Turbo Tax no longer recognizes Box 10 as taxable income and I'm back to being taxed at $100k (before all other deductions of course).
‎June 5, 2019
3:37 PM