Child care expenses 2020

[california1977]

I'm unable to understand the how dependent care expenses are being calculated in my case. Both me and my wife contributed $5000 to Dependent care FSA, totaling $10,000. And our expenses towards the care for our two children were $10,232. So, following are my questions:

• Even though me and my wife contributed to Dependent care FSA, are we still limited to $6000 for both the children?
• Do we need to pay back taxes for $10,000 - $6000 = $4000 ? And why don't I see this number anywhere?  I see being taxed for $5000, which doesn't match with $4000
•  Where is the number $11,000 coming from in the picture below ? 

[ColeenD3 · Accepted solution]

The maximum contribution through work is $5,000, regardless of your expenses. The other $5,000 is being added back into income.

• Even though me and my wife contributed to Dependent care FSA, are we still limited to $6000 for both the children? Yes
• Do we need to pay back taxes for $10,232 - $6000 = $4232 ? And why don't I see this number anywhere?  I see being taxed for $5000, which doesn't match with $4232. No, that is not the math. It is the amount you over contributed, $5000.
•  Where is the number $11,000 coming from in the picture below ? It must be the $6,000 you are allowed to claim plus the $5,000 on your W-2.

[california1977]

Thank you. So, should I even both adding the details about care providers in Turbo tax beyond first $5000. I'm anyways paying taxes for the extra $5000 that I used from Dependent care FSA, so IRS doesn't care what I used it for, right?

[ColeenD3]

Yes, there is still that extra $1,000, the difference between the $5,000 on your W-2 and the $6,000 you are allowed.