Hi, I have two kids (aged 5 and 7) in elementary school. We used 4 different providers and spent a total of $14043 in expenses for summer day camp and after school programs. We have $5000 in dep care FSA and we both work (W2s input correctly). Under "Child and Dependent Care Credit Summary", "eligible dependent care expenses is listed as $11417 instead of $14043. I've read and re-read sections about qualifying expenses and all the costs qualify. The difference is $2626 in qualifying expenses, which happens to be the amount paid to the school district sponsored onsite after school program for the 5 year old. $11417-$5000 (FSA) = $6147 in expenses eligible for credit (instead of $14043-$5000=$9043). I looked at form 2441 but couldn't figure out how they came up with $6147 instead of $9043. I looked over various relevant discussions and looked at common errors - made sure W2 are under correct people (we both work), no carryover FSA from 2020, both kids are listed as dependents, etc. Is this a TurboTax error or am I misunderstanding something? Thanks in advance for your help!
If the difference is the 2,626 you paid to the school district, I would revisit that entry screen.
Did you enter a tax ID number for the school or select that it is tax exempt ?
There are other limits as well, but since you say the difference is exactly the 2,626 paid to the school, I would look at that particular entry.
You'll need to select tax exempt and enter the name of the school as the business.
If the difference is the 2,626 you paid to the school district, I would revisit that entry screen.
Did you enter a tax ID number for the school or select that it is tax exempt ?
There are other limits as well, but since you say the difference is exactly the 2,626 paid to the school, I would look at that particular entry.
You'll need to select tax exempt and enter the name of the school as the business.
Thanks for the reply. I entered the tax ID and name as listed on the tax statement provided by the organization. After playing around with the software, I was able to go in and manually enter the amount of childcare expenses for each child. The program auto populated the amounts, but I was able to manually update it to include the $2626. That fixed the problem.