Possible 2441 Form issues with Line 2 and Line 14

[ag4tax]

In form 2441, Line 2, column C (Qualified expenses), it is showing amount after deducting DC FSA shown on W2. Is this correct, is it not supposed to show complete amount paid to the day care provider?

Secondly, how do I get turbo tax to add amount that is carried over form 2021 into 2022. My employer has a plan that is form April 1 2021 to March 2022. I will be utilizing the 3K amount in year 2022, but turbo tax does not provide a way to specify that amount for 2021 i.e. line 14 of the form.

[RaifH]

Yes, the amount in Box 2 is correct. The qualified expenses are after the employer-provided benefits are deducted from the cost of child care. The amount of pre-tax dollars from your employer to pay for childcare cannot be used for the Child and Dependent Care Credit.

Box 14 can be filled in by editing the W-2 that has an amount reported in Box 10 for dependent care benefits. TurboTax asks if your employer provides on-site child care. It then asks Do you have a Flexible Spending Account to pay for child or dependent care? Answer Yes and enter the amount that carried over to 2022. 

[ag4tax]

Thanks!

Is this amount really considered carry over? I was able to get the remaining amount reimbursed in march before the end of plan year. Thus, my question on whether this should be considered as carry over as this increases the tax credit even tough I do get the full DC FSA back by March 2022. IN fact as per my employer policy I can get full amount back for services till March 22 by filing claim till June 2022.

[Cynthiad66 · Accepted solution]

No, this shoulld not be considered as a carryover.  It should be shown used in tax year 2021.

Since you were reimbursed within the plan year you will need to show that the full amount was used for 2021 tax return.  It will not show up as a carryover if you show that it is used.

Even though the plan year extends beyond the tax year, it is still considered used within the tax year if it is used before plan year expires.