Dependent Care Expense account reported in Box 10 as Dependent Care Benefits?

[BillM223]

As I noted, there are two things in play here.

As for as the credit, the amount carried over will not factor in the calculation for the credit.

As for the deduction (exclusion) for the FSA, the carryover will not be taxed in 2020, on the assumption that it will be used in 2021.

When you enter your data into TurboTax, remember that the amount left over is entered in the W-2 interview.

If any of the box 10 amount is taxable, it will appear on line 1 of the 1040 with the code of DCB.

[patte108]

Thanks @BillM223 , I must not have read your previous post correctly.  I oversaw the W-2 entry of the carryover.  I'm all set now.  Many thanks.

[netska]

HI Bill - 

Same situation here. I have 5000 on line 10. We had about 3500 of expenses in 2020; however, I did not submit the expenses until after my W-2 was processed. Should I ask my HR department to re-process the W-2 now that I used those FSA funds to reimburse myself? Or will this all get true-up in 2021?

It does not seem possible in Turbo tax to add an amount on Form 2441 Part III Line 16. Probably because we don't qualify for the credit. Perhaps I just carry it ALL over to 2021?

[DawnC]

The credit does not carry over.   To get the expenses on Line 16, you enter the expenses in the Child and Dependent Care Credit section of TurboTax.  

You can enter those expenses which will reduce the amount of Box 10 that will be added back to your taxable income.   So, even if you don't qualify for the credit, you can still apply the expenses to the excluded wages in Box 10.  

You can carry over $550 from your 2020 FSA account to 2021, but you don't need a new W-2.   To report the expenses - 

In the search field in TurboTax, search for child care credit.    Select the Jump to link and we'll take you right there.

Related Information:

• What is the Child and Dependent Care Credit?
• Who is a Qualifying Person for the Child and Dependent Care Credit?

@netska - DCB will be added to this amount on Line 1 of Form 1040 - which comes form Line 26 of Form 2441

[carlaf304]

I am still confused by this.

Box 10 has $3019 for my dependent care (FSA) deductions.  I spent all of this on childcare, however in Turbo tax this is being included in my Wages on line 1 and is taxable.  What am I missing?   I thought it was only taxable if you did not use all of the funds in the FSA.  

[BillM223]

Did you complete the dependent care interview under Deductions & Credits->You and Your Family->Child and Dependent Care Credit? To have the amount in box 10 not get added back to your income, you have to document that you spent the money for dependent care, and who you gave the money to. Did you fill out all the information for each care provider?

[carlaf304]

I can’t get to the questions.  I spent an hour yesterday on the phone with TurboTax support.  Filed an extension for the return until I figure this out.

[netska]

I can't figure out how to put in the information either. I think at one point I completed the questionnaire but now that I am trying to make changes, I can't get back to input the amounts! 

[AmyC]

@carlaf304  @netska

The information is in two places.

One is your w2 showing the amount deducted for child care. It is added to your wages if you have no child care expenses.

Two - you must enter child care expenses in the federal deductions section. Go to You and Your Family. Select Child and Dependent Care Credit. Click Edit/Update to answer.

You spent the money in 2020 for childcare, the reimbursement date does not matter.

[netska]

Thank you Amy. That is what I thought but I only get the following 3 questions:

Do you want to use last years earned income?

Did we earn income as inmates?

Congrats - you get the credit!

One last question - Do we need to file the 8832. 

That's it. No where in that area does it ask me how much I spent on child care expenses. 

I also looked in the area that I entered my W-2 information but the only question there was how much we forfeited. So again, how do I enter the amount on line 16 of Form 2441????

[KathrynG3]

The questions regarding child care expenses begin immediately following Whose care did you pay for? at How much did you pay for child care in 2020? 

Next, when entering details about the care provider, below the zip code, there is a spot to enter Total paid to this provider in 2020. 

For more information, see: The Ins and Outs of the Child and Dependent Care Tax Credit - TurboTax Tax Tips & Videos

@netska

[netska]

Thanks Kathryn !! I finally figured out the issue. My husband is self-employed and is a partner in an LLC.  His income is not qualified as "earned income" so we do not qualify for the credit. But I don't understand. He works, the business is profitable and we include his percentage of the income on our joint income. So why does it not qualify? Did i miss something when inputting his information? Or is there a glitch?

[DawnC]

Do you get a K-1 from the partnership?   He has to have an entry in Box 14A for the amounts to count as compensation.   If his self-employment business had a loss, this offsets his earned income that qualifies for the credit.    There is a worksheet you can look at to see if this happened in your case.    Look at Part ll of the Earned Income Wks.   There are columns for you and your spouse and they both need to reflect positive totals on Line 8.      @netska

[ian232]

Hi Critter,

My $5000 in Dependent Care benefits (Box 10) are being added to my taxable income. I have reviewed the Dependent Care Credit section several times, and there is no space to enter the amount my wife and I paid for dependent care last year. Help!

Thanks.

[Critter-3]

Answered in your other post :    https://ttlc.intuit.com/community/user/viewprofilepage/user-id/4592315