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Dependent Care FSA and Child and Dependent Care Credit
I had over $10,000 in child care expenses for 2022. I contributed $2,700 to a Dependent Care FSA.
My understanding is that the $2,700 would be subtracted from the $10,000 and that I would still have $3,000 in eligible expenses for the Child Dependent Care Credit. TurboTax correctly subtracts the $2,700 from the $10,000 to say I have $7,300 in expenses, however the summary screen subtracts the $2,700 again.
Eligible dependent care expenses: $3,000
Dependent care benefits from your W-2: $2,700
Expenses eligible for credit: $300.
Since my expenses exceeded $5,700 ($3,000 + $2,700) I should be able to use the DCFSA and have a full claim on the Child and Dependent Care Credit. What steps must I do to use both?
