If I have Dependent Care Benefits, can I not claim Child and Dependent Care Credit?

[messner8000]

In 2021 I had $10,500 (the maximum) in Dependent Care Benefits (which are listed in Box 10 of my W2)., in the form of a dependent care flex. spending account.  Am I correct that if I used this entire amount (or didn't use it, but was allowed to roll it over to use in in 2022 - i.e., I didn't forfeit any of the money), and I did not have child care expenses exceeding $10,500 in 2021, then I cannot claim the child and dependent care credit - because I already received a tax benefit on my child care expenses? 

Thanks!

[JillS56]

Yes, you are correct that you have not forfeited any money as long as your employer has elected to allow employees to roll over any unused portion of the FSA amount to 2022.   

I know that previously I indicated to you that you do not need to file Form 2441, but I was incorrect in the respect that Part III does need to be completed so that the amount of your rollover can be recognized.   

If you are using TurboTax Desktop

1. Sign in to TurboTax if you are not already signed in.
2. Switch to the Forms mode
3. Scroll down to Form 2441
4. Enter the daycare provider in Part I and what you paid to the daycare provider 
5. Scroll down to Part II and make sure the child(ren) are entered correctly with the correct amount of daycare charges to each child(ren)
6. Scroll down to Part III and double-check that $1,500 is on Line 12, Line 13 is blank, and $500 is on Line 14.   
7. Scroll down to Line 26 and make sure that there is a $0.00 on Line 26.

If you are using TurboTax online, follow these steps:

1. Open TurboTax if not already open
2. Go to the W-2 screen and open the W-2 which has the FSA in Box 10
3. Click Continue
4. Click Continue on this screen and click "None of These Apply to Me" unless one of them do apply to you, click Continue
5. On the next two screens click Continue
6. Next screen answer No and Continue
7. Next screen answer Yes; enter $500 in the box and click Continue
8. Click Continue through the rest of the screens.

This will generate Form 2441, be sure to enter the Child and Dependent Care screen to enter the daycare provider.

I am sorry about all the confusion.   This is new this year and is only for this year.   I have actually gone through the steps to make sure this will work for you.