I spent $3427 on qualified dependent care expenses but TurboTax keeps calculating that I only spent $270. How can I edit this error?

[arieljahner]

I also carried over $1573 in qualified care expenses to 2022 (from $5000 we put in a FSA account), but the form keeps saying $1843.

[MarilynG1]

Your $1843 Dependent Care Expense carryover is the $1573 left when subtracting your Expenses of $3427from your FSA balance of $5000.

Plus the $270 credit calculated for you that you were not allowed to take this year, would equal $1843 for the carryover amount in 2022. 

Click this link for more info  on the Child and Dependent Care Credit.

[arieljahner]

The $270 is showing up on line 2c of form 2441. 

Zero idea where this number is coming from.

[MarilynG1]

Did you indicate in the interview that you 'paid expenses in 2021 that were incurred in 2020'?

[arieljahner]

No - all expenses occurred in 2021.

Put $5000 in dependent care FSA, used $3427 to pay for dependent care.  It's giving me a $135 credit via Turbotax, but when I fill out the form manually I'm getting a much higher credit 

[RaifH]

What does Box 10 of your W-2 report as dependent care benefits?

Box 2c of Form 2441 is the amount you spent minus the dependent care benefits reported by your employer. This is the amount the Child and Dependent Care Credit is based on.

If you spent $3,427 in 2021 and TurboTax is reporting $270 as the amount spent, I would guess the Box 10 amount is the difference between the two. 

[arieljahner]

Box 10 on my W2 is $5000 (I just have the FSA dependent care account)

So does that mean I don't qualify because I didn't spend the full amount even though I can carry it over?

[RaifH]

Yes, you do not qualify for the Child and Dependent Care credit because it was paid for with pre-tax dollars from your FSA.

Qualified expenses that appear in Box 2c only include out-of-pocket expenses. 

As for the wrong carryover appearing, I would check the entries on your W-2. Once you enter $5,000 in Box 10, TurboTax asks some follow-up questions about the dependent care benefits:

1. Did your employer provide on-site child care?
2. Did you have an FSA to pay for child or dependent care? Answer Yes.
3. If you had any money left in your account at the end of the year, enter the amount here. If you used it all, just enter 0. Enter 1,573.

[arieljahner]

Okay thank you! then why is TurboTax calculating $270 as qualified expenses and giving me $135 in credit?

1. Did your employer provide on-site child care?  I answered no.
2. Did you have an FSA to pay for child or dependent care? Answer Yes.  I answered Yes. Entered 1,573.
3. If you had any money left in your account at the end of the year, enter the amount here. If you used it all, just enter 0. Enter 1,573.

[RaifH]

When I entered it, it worked correctly and there was no $270 for qualified expenses which results in $135 credit. Please verify your entries in the Child and Dependent Care Credit screen:

1. In the Federal > Deductions & Credits > You and Your Family > Dependent Care Credit section, click Revisit
2. Answer Yes twice
3. Click Edit next to your child's name. The amount there should be 0. Make sure that the total dependent care expenses you paid matches the $3,427
4. Click Done and then make sure the Amount Paid to your provider is also $3,427 
5. Answer No to Did you pay for any 2020 care in 2021?
6. Enter 0 for Carryover used in 2021