My wife and I both claimed the full $5000 allowable from our respective employers not knowing we were allowed only $5000 max per family. What do we do? Claim the entire $10,000? How does Turbo Tax make this work? Is there a penalty from the IRS?
You are correct, Dependent Care FSA is limited to $5000 per household. If both of you contributed, the additional $5000 will be included in your wages on line 1 of your form 1040. TurboTax will calculate that automatically as long as you report both your W2s with the $5000 Dependent Care FSA contribution as shown.
You are correct, Dependent Care FSA is limited to $5000 per household. If both of you contributed, the additional $5000 will be included in your wages on line 1 of your form 1040. TurboTax will calculate that automatically as long as you report both your W2s with the $5000 Dependent Care FSA contribution as shown.