I've contributed $3000 to dependent care FSA in 2020. I've paid a $1000 for day care. My employer allowed me to carry over the unused balance, $2000, to next year based on Covid relief bill passed at the end of 2021.
However, Turbo tax online is showing that remaining $2000 dollars as taxable income. Where, in turbo tax, do we specify that $2000 dollars is not taxable income as it has been rolled over to 2021.
You missed a question at some point. Turbotax will ask how much did you forfeit or roll over. Because you skipped that question (or answered "zero" incorrectly), the program assumes the entire $3000 was paid out to you.
I would re-run the dependent care credit interview. The question might also appear in the W-2 interview when Turbotax recognizes an amount in box 10. (I can't remember from the last time I had a DCB and I haven't tested it this year.)
You missed a question at some point. Turbotax will ask how much did you forfeit or roll over. Because you skipped that question (or answered "zero" incorrectly), the program assumes the entire $3000 was paid out to you.
I would re-run the dependent care credit interview. The question might also appear in the W-2 interview when Turbotax recognizes an amount in box 10. (I can't remember from the last time I had a DCB and I haven't tested it this year.)