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z3n0
Level 2

Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

 
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RaifH
Expert Alumni

Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

The amount of pre-tax dollars from your employer to pay for childcare cannot be used for the Child and Dependent Care Credit. This amount is reflected in Box 10 of your W-2s.

 

The credit is based on a maximum of $8,000 spent on childcare and is reduced for every dollar of childcare you paid using pre-tax income. Since your dependent care from your FSA exceeds $8,000, you cannot claim the credit.

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3 Replies
z3n0
Level 2

Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

Some more details:

Both parents have W-2 income > $20k;

we used 10k in dependent care FSA;

The child has lived with us all year.

The expenses are for 2 licensed daycares (we have EINs for both)

 

RaifH
Expert Alumni

Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

The amount of pre-tax dollars from your employer to pay for childcare cannot be used for the Child and Dependent Care Credit. This amount is reflected in Box 10 of your W-2s.

 

The credit is based on a maximum of $8,000 spent on childcare and is reduced for every dollar of childcare you paid using pre-tax income. Since your dependent care from your FSA exceeds $8,000, you cannot claim the credit.

z3n0
Level 2

Turbotax says we are not eligible for Dependent Care Credit. Why not? (married filing jointly, AGI < 400k, with 1yo child, spent 20k for daycare)

Oh I see... Now I get it.

Thank you so much for the clarification!

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