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My dependent care credit summary looks wrong, like I double counted my expenses

I'm asked how much I paid for my 2 kids care, including FSA amounts. I entered those, which totals about $8500.

It then says I have almost 8k of employer provided benefits, and that my expenses must be more. Below that it lists my kids expenses, but they don't reflect what I actually put on that form - it's about 1k lower than I entered.
. Then it asks for what I paid care providers. I put the 8.5k amount I did at the beginning

The summary page shows I have 15k of eligible daycare expenses, subtracts my 8k if W2 benefits, and ends up calculating a $743 credit. I apparently then pay taxes on $6.5k if the dependent care benefits.

This is confusing and seems wrong, but I followed the prompts exactly. How would I get 15k of eligible expenses?

Can anyone clear this up? How else would I fill this out?
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1 Best answer

Accepted Solutions
BillM223
Expert Alumni

My dependent care credit summary looks wrong, like I double counted my expenses

"Eligible dependent care expenses - $14,986" Honestly, at the moment, I can't tell you where the 14,986 is coming from.

 

"Lesser of expenses or spouse's earned income - $1,485

Credit percentage - 50%

Credit you will receive - 743.00

Dependent car benefits you must pay taxes on - 6,432"

 

These numbers make sense. I would encourage you to look at your 2441 (and not what's on the input screens) to make sure that the arithmetic is good and self-explanatory.

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3 Replies
BillM223
Expert Alumni

My dependent care credit summary looks wrong, like I double counted my expenses

What is your spouse's earned income? 

 

That Summary screen is very confusing if your spouse had little or no earned income.

 

So please share with us your Summary:

 

Eligible dependent care expenses - $12,500

Dependent care benefits from your W-2 - $7,500?

Expenses eligible for credit - 5,000?

Lesser of expenses or spouse's earned income - ?

Credit percentage - ?

Credit you will receive - 743.00

Dependent car benefits you must pay taxes on - 6,500?

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My dependent care credit summary looks wrong, like I double counted my expenses

Yep, my wife doesn't have much earned income.

 

Eligible dependent care expenses - $14,986

Dependent care benefits from your W-2 - $7,917

Expenses eligible for credit - $7,069

Lesser of expenses or spouse's earned income - $1,485

Credit percentage - 50%

Credit you will receive - 743.00

Dependent car benefits you must pay taxes on - 6,432

 

I filled in these amounts

Total dependent care expenses paid for child 1: 4464

Total dependent care expenses paid for child 2: 4090

(this totals the $8554 that I filled in for amount paid on care providers)

 

Yet it seemed to "autocorrect" those amounts to 3,689 and 3,380, respectively, totaling the 7,069.

 

 

BillM223
Expert Alumni

My dependent care credit summary looks wrong, like I double counted my expenses

"Eligible dependent care expenses - $14,986" Honestly, at the moment, I can't tell you where the 14,986 is coming from.

 

"Lesser of expenses or spouse's earned income - $1,485

Credit percentage - 50%

Credit you will receive - 743.00

Dependent car benefits you must pay taxes on - 6,432"

 

These numbers make sense. I would encourage you to look at your 2441 (and not what's on the input screens) to make sure that the arithmetic is good and self-explanatory.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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