topic Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare) in Deductions & credits

Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

z3n0 — Mon, 09 Mar 2026 05:37:20 GMT

Re: Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

z3n0 — Sat, 19 Feb 2022 06:51:33 GMT

Some more details:

Both parents have W-2 income > $20k;

we used 10k in dependent care FSA;

The child has lived with us all year.

The expenses are for 2 licensed daycares (we have EINs for both)

Re: Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly...

RaifH — Sat, 19 Feb 2022 14:21:54 GMT

The amount of pre-tax dollars from your employer to pay for childcare cannot be used for the Child and Dependent Care Credit. This amount is reflected in Box 10 of your W-2s.

The credit is based on a maximum of $8,000 spent on childcare and is reduced for every dollar of childcare you paid using pre-tax income. Since your dependent care from your FSA exceeds $8,000, you cannot claim the credit.

Re: Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly...

z3n0 — Sat, 19 Feb 2022 17:38:06 GMT

Oh I see... Now I get it.

Thank you so much for the clarification!