I am not prompted to enter any dependent care expenses on my 2024 return. I have a Dependent Care FSA for which I have elligable expenses. Where can I enter these?

[user17598801544]

I've been throught the options under dedutions sever times, but I still can't find it.

[xmasbaby0]

If you are paying for childcare with the pre-taxed money from a FSA, you cannot "double dip" and also get the childcare credit on your tax return.   If your childcare costs exceed the amount you paid for from your FSA you can enter childcare costs under the child and dependent care credit.

Federal>Deductions and Credits>You and Your Family>Child and Dependent Care Credit

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-dependent-care-credit/L8h...

You will not get the childcare credit until (unless) you enter income earned from working.   The credit does not work unless you enter your income first.   If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.   If you have self-employment income and show a loss you will not get the childcare credit.  You will not get the credit if you are filing married filing separately.  

If you have entered all of your income and you have entered your dependent(s) then work on the childcare credit by entering the Tax ID or Social Security number of your childcare provider and enter the amount you paid for the childcare.

One of the most common mistakes that messes up the childcare credit for people is listing all of the earned income under only one name on a joint return.  Make very sure that your incomes are listed under each of your names.  It’s pretty easy to check.  Go to the Income section, and click “update” on Wages and Salary.  That will take you to the W-2 Summary.  Do you see income listed under both of your names? 

 The person receiving the care had to be 12 or under or qualified as mentally or physically disabled. To claim the childcare credit you need to be filing as Head of Household or Married Filing Jointly. (NOT married filing separately)

 If your child was born in 2024 make sure you say the child lived with you all year. The credit is a percentage of your expenses based on your AGI (the higher the income, the lower the percentage)  You must provide the Social Security number for each child you are claiming, and the Social Security number or Tax ID for each care provider. 

In the case of divorced or never-married parents—only the custodial parent can use the childcare credit.

And remember that the childcare credit is a NON-refundable credit.  It can reduce your tax owed down to zero, but it is not added to your refund.

[user17598801544]

@xmasbaby0 Thank you for the reply.  I should have been more clear.  I'm just trying to "single-dip" appropriately at this point and correctly file my eligable expenses covered by the DCFSA. I am not seeking any additional deductions or credits.  For evey year that I have had a DCFSA, and used it for childcare expenses, I have also filed form 2441 "Child and Dependent Care Expenses" listing qualified expenses for which I used the DCFSA funds.

Turbo Tax has correctly identified that I have DCFSA contributions reflected in my W2, and provided a message in the income section of the application that I would be prompted to enter my eligable expenses in the Deductions & Credits section, but I was not.  So I was looking for where I can enter these qualified expenses in the application, so they are reflected on form 2441 on my return.

[Opus 17]

@user17598801544 

Firstly, your DCFSA should be recorded in box 10 of your W-2.  Is is there?  If not, you need a corrected W-2.

If you enter a W-2 with a dollar amount in box 10, Turbotax should automatically prompt you to enter your dependent care information, because it's an error to file without that.  You can also access the dependent care credit directly on the "Deductions and Credits" page, although I don't know exactly how it's called.  It might be under "your family" and then "child and dependent care."  If you are using Turbotax Online, you might not see all options unless you look for a button like "show more options" or "show me everything". 

[user17598801544]

I believe found the issue.  Here are the detail for anyone else in the same situation:
In previous years, for which we had a DCFSA, we both had earned income.  In 2024 one of us was not employed for at all during the tax year, and had no individual earned income.  And while dependent care expenses allowing "you to work or look for work" is normally eligable as a qualified DCFSA expense, if one partner has zero earned income for that year due to not having a job, dependent expenses enabling job search are not deductable at all (per IRS Publication 503 (2024)).

In TurboTax defense, it does mention this in Deductions & Credits > Dependent Care Credit. It seems to have detected a single W-2 and made the determination and moved on.  It was confusing, and would have been nice if it were called out a little more clearly, but the logic isn't off.

[Opus 17]

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@user17598801544 wrote:

I believe found the issue.  Here are the detail for anyone else in the same situation:
In previous years, for which we had a DCFSA, we both had earned income.  In 2024 one of us was not employed for at all during the tax year, and had no individual earned income.  And while dependent care expenses allowing "you to work or look for work" is normally eligable as a qualified DCFSA expense, if one partner has zero earned income for that year due to not having a job, dependent expenses enabling job search are not deductable at all (per IRS Publication 503 (2024)).

In TurboTax defense, it does mention this in Deductions & Credits > Dependent Care Credit. It seems to have detected a single W-2 and made the determination and moved on.  It was confusing, and would have been nice if it were called out a little more clearly, but the logic isn't off.

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And in this case you still need form 2441 to reconcile the amount and add it back to your taxable income. 

[VolvoGirl]

@user17598801544   And xmasbaby0 did post.... If you are filing a joint return you must show income for both spouses.....  in the first answer you got above.     

[user17598801544]

@VolvoGirl I am grateful to have to have recieved any advice at all, including the knowledgeble advice of xmasbaby0.   Not to split hairs, but their advice seemed specific to "childcare credit", which they note as different from deducting childcare payments of pre-taxed money from a FSA.  They advised on the former, I was asking about the latter, on which they didn't elaborate. 

More specifically to the point "you must show income for both spouses". I do. Both my spouse and I are reporting taxable income for 2024.  However, only one of us is reporting earned income, which seems to be the crux of the issue.

[xmasbaby0]

However, only one of us is reporting earned income, which seems to be the crux of the issue.

That is correct.   In order to get the childcare credit you have to show W-2 income or self-employment income that did not show a loss.   It must be earned income---not just "taxable" income from some other source.