Wisconsin Schedule SB child and dependent care expenses

[TAdams1]

Is turbo tax filling in line 12 of Wisconsin Form 1 - Schedule SB (Child and dependent care expenses) correctly? If I received $5,000 in dependent care benefits through work, the max I should be claiming on line 12 should be $1,000 (for more than one qualifying dependent) since qualifying expenses may not exceed $6,000 for Wisconsin. Even though Federal Form 2441 allows for a maximum of $16,000 in qualifying expenses in 2021, the state of Wisconsin still has $6,000. Therefore, referencing line 3 in Federal Form 2441 for use in Wisconsin Form 1 - Schedule SB would be incorrect if it is greater than $1,000 in my case (having already received $5,000 in dependent care benefits through work). Or am I interpreting something incorrectly?

Thanks,

Troy

[RaifH]

The TurboTax calculation is correct. According to the Line 12 Wisconsin SB instructions on page 6, it is equal to the amount on Line 6 of Form 2441, but not more than $3,000 for one child or $6,000 for two or more children. 

If you received $5,000 in benefits but paid $11,000 or more total for dependent care, then you would still get the full $6,000 subtraction from Wisconsin income. 

[TAdams1]

You can't double-dip on the $5,000 already received in benefits. That counts towards the $6,000 max for two or more children. The most I could have on Line 12 of Wisconsin SB would be $1,000.

In this same situation in years past, the most that Line 6 of Form 2441 could be was $1,000 (when the federal max was $6,000 for two or more children). Since that federal limit was raised to $16,000 for two or more children in 2021, Line 6 can now be greater than $1,000. However, Wisconsin still has the old $6,000 max so Line 12 on Form SB should only be $1,000 at most.

[RaifH]

Line 6 on Form 2441 is the qualified expenses you have paid for childcare after reducing the amount by any employer benefits. This carries over to your Wisconsin return for up to $6,000 for two or more children. TurboTax is calculating the credit correctly in accordance with the Wisconsin instructions. 

You are not getting a double benefit if you paid $11,000 in child care expenses, had $5,000 reimbursed by your employer and receive a credit for the other $6,000 on your state and federal taxes. 

Since the adjustment is new this year to not conform with the federal changes, how it was calculated in prior years may not reflect how it is calculated this year.