topic Couple filed MFS due to separation not finalized. Why TT reporting $2,500 of income when box 10 on W2 showing $5,000. Custodian parent paid for all child care. in Get your taxes done using TurboTax

Couple filed MFS due to separation not finalized. Why TT reporting $2,500 of income when box 10 on W2 showing $5,000. Custodian parent paid for all child care.

u18cg490 — Tue, 24 Feb 2026 07:19:24 GMT

How to report this is as an exception to qualify for dependent care credit

Re: Couple filed MFS due to separation not finalized. Why TT reporting $2,500 of income when box 10 on W2 showing $5,000. Custodian parent paid for all child care.

VolvoGirl — Sat, 23 Sep 2023 23:46:48 GMT

If you are not divorced yet you can file Joint to get the credit. There are several credits you can't take when filing separately, like the

EITC Earned Income Tax Credit

Child Care Credit

Educational Deductions and Credits

See …….

https://ttlc.intuit.com/community/married/help/is-it-better-for-a-married-couple-to-file-jointly-or-separately/00/25590

Re: Couple filed MFS due to separation not finalized. Why TT reporting $2,500 of income when box 10 on W2 showing $5,000. Custodian parent paid for all child care.

Critter-3 — Sun, 24 Sep 2023 12:29:43 GMT

see complete answer from @Opus 17

Re: Couple filed MFS due to separation not finalized. Why TT reporting $2,500 of income when box 10 on W2 showing $5,000. Custodian parent paid for all child care.

Opus 17 — Sun, 24 Sep 2023 01:00:39 GMT

@Critter-3 that is not quite correct.

@u18cg490 If you have a dependent care benefit at work (work provided day care or a flexible spending account) and you are filing as married filing separately, the maximum benefit that can be excluded from income tax is $2500 (it is $5000 for married filing jointly).

Additionally, the parent with the DCB can only use the benefit if they also claim at least one qualifying child as a dependent. If the parent who claims the child as a dependent is the parent who has a DCB, then the first $2500 of care costs are excludable from income. If the dependent care benefit was $5000, the remaining $2500 must be added back to the employee’s taxable income, although there is no penalty for this situation. The dependent care credit cannot be claimed for any difference in costs, so the maximum possible benefit when married filing separately is a $2500 DCB (FSA). .