Dependent Care FSA contribution

[spafrager]

I contributed 5,000 to an FSA, but Turbotax says I have "$4,850 of excludable dependent care plan contributions." Where is that $150 difference coming from? 

I did not carry forward anything. For the last few years I've spent over 10K in dependent care expenses, and get $200 credit (20% of $6,000 (2 kids) - $5,000 in FSA contributions). Not sure why this year Turbotax says I have $4,850 excludable dependent care plan contributions vs $5,000.

[DianeW777]

You should have the full $5,000 of dependent care benefits (DCB) tax free since it was used for dependent care. When I do a test of $110,000 in wages including the DCB and $10,000 in expense ($5k for each of two children) I receive the full tax free benefit as it should be.

Review your W-2s to be sure you have selected the right taxpayer for each one (if you are married) and review the dependent care section to be sure you have entered the correct child care expenses. When I review my 1040 and Schedule 3 you can see the results below. 

Using the Tax Tools:

• To find Tools: 
  1. Sign into your TurboTax account and open or continue your return. 
  2. Select Tax Tools in the left menu. 
  3. You'll find Tools beneath Tax Tools.
  4. Select View Tax Summary
  5. Select Preview My 1040 (left black panel)

[spafrager]

It appears it believes I have a forfeited/carried over amount, but I did not.

[BrittanyS]

It would be helpful to have a TurboTax token.  The token provides a sanitized version of your return.  We will be able to see the numbers but not any personal information such as your name, SSN, or address.  

If you would like to do this, here are the instructions: 

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen, and you will get a Token number. 

In TurboTax CD/Download versions, go to the black panel on your screen and select Online. 

1. Scroll down and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen, and you will get a Token number. 

Reply to this thread with your Token number. 

We will then be able to see precisely what you are seeing, and we can determine what exactly is going on in your return and provide you with a resolution.

@spafrager

[spafrager]

Thank you - my token number is 1108220

[BrittanyS · Accepted solution]

From reviewing the token, the forfeited amount comes from an entry in your W-2.  For the W-2 with the $5,000 childcare, a question states, "Did you have a Flexible Spending Account to Pay for a child or dependent care?  You marked yes.  The next question is, "If you had any money left in your account at the end of the year, enter the amount here.  If you used it all, enter 0."  There was an entry made for $150 here.  If this is incorrect, you can correct the entry by following these steps in TurboTax Online:

1. Click Wage and Income
2. Click Revisit next to Jobs (W2)
3. Click Edit next to W-2 with the childcare included
4. review entries and click continue until you see the question, "Did you have a Flexible spending account to pay for child or dependent care?"
5. Remove the entry for $150 and enter the correct amount

@spafrager 

[spafrager]

This worked - thank you. There is a similar question about forfeited or carryover amounts in the deductions/credits section, so that confused me.