Form 2441 Calculation Error

[Seyon1]

Issue:  Turbotax is putting $5,000 in Form 2441, line 12, even though I typed $6,534.30 for box 10 of my W-2.  This is causing my taxable income to be under-calculated.

Details:

1. My W-2 Box 10 shows $6,534.30 (composed of a $5,000 DCFSA and a $1,534.30 FEEA subsidy paid by my employer (a Federal agency) directly to my child's daycare center), exceeding the allowable $5000.

2. My employer did not include the excess $1,534.30 in my Box 1 wages.

3. Per IRS Form 2441 instructions, Line 12 must reflect the total benefit received from the W-2 ($6,534.30), so that the excess can be calculated on Line 26 and added to my 1040 Line 1e as taxable benefits.

4. The Bug: TurboTax seems to cap Line 12 at $5,000, which results in the extra $1,534.30 of taxable income "disappearing" from the return.  I'm worried this will create a mismatch between my filed return and the W-2 copy the IRS has on file and result in an underpayment penalty.

I submitted a copy of my return under token [removed]-17190725 if anyone at Intuit cares to take a look.  Otherwise, if anyone has an ideas/workarounds, I'm all ears.   I really wanted to get this thing filed tonight!

PS:  I see the workaround where I can add the excess back as "other income" on schedule 1, but I am concerned his will still result in a mismatch with the IRS system that is expecting me to report the excess on Form 2441.

[AmyC]

The w2 box 10 is not behaving as expected so let's workaround it.

• Online version -you are correct, enter as other income and describe it as Box 10 excess or similar.
• Desktop version - temporarily override the amount. Proceed through step by step in that section. Return  to forms and cancel override. Hopefully, it will hold. If not, other income should be entered.

This gives you the correct taxable income, a description of the income and low audit risk. Keep your notes and this thread, in case the IRS asks.