If I had 'Dependent Care FSA' $5,000 that's in W-2 box 10 and I used for qualified expense for my child, why Turbotax doesn't give me an option to claim in Form 2441?

Turbotax only asks if my wife or I were 1. full time student, 2. Disabled. Because I chose, none of above, it says we are not eligible then the total of pre-tax $5000 was added back to AGI calculation.
We added both our children as dependent and still Turbotax stops the process there.

43520

Level 15

Jul 18, 2024 7:26:41 PM

If you are trying to enter information for the childcare credit before you enter your income from working, the credit will not work. You have to enter your income first. And...if you have self-employment income but show a loss, you are not able to get the childcare credit. Are you able to show that both spouses had income from working?

Level 15

Jul 18, 2024 7:34:49 PM

The $5,000 FSA amount was already pretax so you have already exceeded the amount of expense you can claim for dependent care credit which is $3,000. Taking the FSA to forgo the dependent care credit is usually advantageous since the FSA reduces your AGI and you pay less in payroll tax.

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If I had 'Dependent Care FSA' $5,000 that's in W-2 box 10 and I used for qualified expense for my child, why Turbotax doesn't give me an option to claim in Form 2441?