topic Same issue. Problem appears to be occurring because we do... in Retirement tax questions

W2 line 10 dependent care benefits, why taxable?

veraatw — Fri, 07 Jun 2019 22:04:51 GMT

Box 10 is for the dependent care FSA contributions for th...

LeeM — Fri, 07 Jun 2019 22:04:52 GMT

Box 10 is for the dependent care FSA contributions for the year. Unless you have childcare expenses during the year that qualify to offset the amount, then it becomes taxable income.

If you used the money to pay for Dependent Care Benefits, then during the W-2 interview process, on the pages that follow entering the actual boxes, you need to answer "Yes" to used money to pay for dependent care expenses.

Then, you will need to go through the Dependent Care section under Deductions and Credits. When it asks again if you used the money for dependent care for the year, you answer "Yes".

I did all of that. It didn't work. The amount reported...

vanlunsen3 — Fri, 07 Jun 2019 22:04:53 GMT

I did all of that. It didn't work. The amount reported in box 10 of W2 is still being added back to taxable income.

I have the same problem. I added all dependent care provi...

hatandmittens — Fri, 07 Jun 2019 22:04:54 GMT

I have the same problem. I added all dependent care provider expenses correctly...total nearly $25K this year. When I add W2 Box 10 Dependent Care Benefits value of $5,000 (aka, the maximum allowed for Dependent Care Flexible Savings Account), this increases my tax bill by $1,000. This should be a nontaxable benefit--why is my tax bill increasing when this value is added?

same problem and question

mjean07 — Fri, 07 Jun 2019 22:04:55 GMT

same problem and question

Same problem here as well... I have had a FSA for depend...

efenton28 — Fri, 07 Jun 2019 22:04:56 GMT

Same problem here as well... I have had a FSA for dependent care for over 4 years. I have never had this problem come up until this year. The whole reason why I have a FSA is so that these funds are not taxed. As soon as I put in the amount from box 10 my tax bill shoots way up. Even after I put the information in about my dependent care expenses nothing really changes. I get a very small tax credit, but I am still owing in a large amount which has never happened. I feel something is wrong. I am getting hit with an extra $700 in taxes here... what is the deal with this??

Same thing is happening to me. Dependent care benefits be...

aishat-mohammed — Fri, 07 Jun 2019 22:04:58 GMT

Same thing is happening to me. Dependent care benefits being added back to income

Same here...

paynejm — Fri, 07 Jun 2019 22:04:59 GMT

Same here...

Same here!

cheriec1 — Fri, 07 Jun 2019 22:05:01 GMT

Same here!

Same here!!! is there an income limitation? I just got d...

dayni — Fri, 07 Jun 2019 22:05:02 GMT

Same here!!! is there an income limitation? I just got divorced so now I am triggering the incoming limitations with only 1 adult.

Same issue. Problem appears to be occurring because we do...

kcwealthy — Fri, 07 Jun 2019 22:05:04 GMT

Same issue. Problem appears to be occurring because we don't qualify for the Child and Dependent Care Tax Credit, but we aren't trying to take that credit. We are only trying to enter provider information to prove we used the W2 Box 10 dependent care benefit on qualified dependent care expenses. Wonder how many people are losing thousands to Uncle Sam due to this error on Turbotax's par. (Yes, my wife and I both work, so we should not be taxed on the dependent care benefit spend on qualified dependent care expenses).

make sure the W2s are associated to the right person

bine22 — Fri, 07 Jun 2019 22:05:05 GMT

make sure the W2s are associated to the right person

same here!!!

Dsaund — Fri, 07 Jun 2019 22:05:07 GMT

same here!!!

I thought the same was happening to me, but I think I fig...

jenlarcar — Wed, 12 Jun 2019 20:05:21 GMT

I thought the same was happening to me, but I think I figured it out. Before entering the box 10 information the full $6000 is considered for the dependent care credit. Once the $5000 (or whatever amount you have) from box 10 is entered into Turbo Tax, this takes away from the amount that is eligible for the dependent care credit (because it was taken as a pretax credit during the year) and lessens the overall tax return. Hope this helps.

This is completely unclear and something TurboTax need to...

Dave5550 — Wed, 12 Jun 2019 20:05:23 GMT

This is completely unclear and something TurboTax need to address and explain immediately. I'm not sure whether to amend my return or not.

TurboxTax has the full amount of my dependent care flexib...

Dave5550 — Wed, 12 Jun 2019 20:05:25 GMT

TurboxTax has the full amount of my dependent care flexible spending on Form 2441 as taxable! How can this be!!!!

jenlarcar that makes no sense. Why would TurboTax assume...

Dave5550 — Wed, 12 Jun 2019 20:05:26 GMT

jenlarcar that makes no sense. Why would TurboTax assume you have $6000 worth of child care expenses before entering it??

Not assumed. Considered.

jenlarcar — Wed, 12 Jun 2019 20:05:28 GMT

Not assumed. Considered.

https://www.irs.gov/instructions/i2441 Not sure if this w...

theresa-thompson — Wed, 12 Jun 2019 20:05:30 GMT

https://www.irs.gov/instructions/i2441

Not sure if this will apply to all of you, but for any of you with dependent care benefits in box 10..in order to exclude them from taxable income your spouse must have earned income as well or meet the exceptions as being a full time student or incapable of taking care of his/her self. So if anyone has a spouse that is a stay at home parent...they will not get to exclude the benefits from income.

Re: Same here!!! is there an income limitation? I just got d...

Hal_Al — Sat, 15 Jun 2019 13:27:57 GMT

Go thru the Turbotax (TT) dependent care interview, again, and check all your answers. if your qualify, TT will generate form 2441, Part III, to claim the dependent care benefit exclusion.

The most common (but not the only) disqualifier is that your spouse did not have any earned income.