How do I get Turbo Tax to complete 2441 Part 3 if I had dependent care benefits that carried over from 2020, but 0 dependent care benefits in 2021(W2 box 10 is blank)?

[ryan_stevens4]

I had dependent care expenses in 2021 that I was reimbursed for with the 2020 carryover.  Turbo tax is calculating a credit for these dependent care expenses.  I believe expenses that were reimbursed with dependent care benefits are to be excluded for the credit calculations if Part 3 is completed.

[RobertB4444]

The prior year amount isn't going to trigger all of the necessary forms for the credit (or lack thereof if you don't qualify.  In order to get to that part of the program go back to your W2 and add $0.01 to box 10.  That will trigger the necessary part of the program.  As you progress through it will ask you about carryover benefits and apply them properly.

Here is a little more information.

[ryan_stevens4]

Thank you!  2441 Part 3 is now being populated.  However, I'm still unable to get Line 13 populated (carryover from 2020 to 2021).  I was not asked any questions regarding the dependent care carryover from 2020 to 2021 (which I believe would go on line 13).  I was asked what the balance was at the end of 2021, which seems to populate line 14 (forfeited this year or carryover to 2022).

[RobertB4444]

If line 14 is correct and all else is good then I wouldn't worry about the carryover from 2020.

[ryan_stevens4]

I believe having a carryover amount on line 13 should eventually flow through to having a value on line 28 which will reduce the qualified expenses in Part 1 (makes sense given I already had my taxable income reduced in 2020 for the carryover amount and I shouldn't get a tax credit on the same amount twice).   I saw the steps in the other post, but I can't get Turbo Tax to ask me the Carryover from 2020 used in 2021 question in the Dependent Care section (i.e., following the Did you pay for 2020 care in 2021 question).

[BillM223]

I believe that the workaround to do this is to enter $1 on box 10 on your W-2. This will cause TurboTax to show you some additional screens including the one that asks you how much carry over you had from 2020.

And when you look at the 2441, you will see that the $1 will make almost no difference.

NOTE: this may cause the IRS to (someday) send you a letter asking why you altered your W-2 upon entry (the IRS gets a copy from your employer). If so, just explain that you did this as a workaround to get the tax software to accept your dependent care carryover.