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Not applicable
posted Jun 14, 2020 10:02:57 AM

What do I do about a Turbotax glitch in calculating childcare credits?

Turbo tax is telling me I don't qualify for a childcare expenses credit. And gives this explanation " Since your $6,149 in care expenses wasn't enough to use up the $5,000 you contributed to your employer's dependent care plan, your Child and Dependent Care Credit is $0.
The $1,068 of unspent care benefits will be added to your W-2 as taxable income."

But I have $1068 expenses in EXCESS of my benefits., not $1068 of unspent benefits.  This explanation seems to say that 5000 is more tha 6149. I'm not sure how to fix this.

0 2 976
2 Replies
Employee Tax Expert
Jun 18, 2020 7:20:49 AM

In addition to the amount reported as a contribution to the dependent care account, you must also separately report the expenses.

 

Follow these steps in TurboTax Online. (This may vary slightly in desktop versions)

  • Under the Federal menu, click Deductions & Credits
  • Expand the menu for You and Your Family
  • Click Start/Revisit next to Child and Dependent Care Credit
  • Answer Yes to Did you pay for child or dependent care in 2019?
  • Choose the dependent and click Continue
  • On the screen that follows, click Add a care provider
  • Enter the information on the following screens

Child and Dependent Care Credit

 

Publication 503

 

Not applicable
Jun 18, 2020 7:44:49 AM

Yes, I did all those steps. I revisited the section, confirmed that I had the same care provider from last year and that I had paid for childcare. I selected my dependent, put in my expenses ($6149) and clicked through to the next screen where I get the message that my expenses $6149 do not use up the amount contributed $5000, I do not qualify. Additionally, it states that the difference between the two will be added to my income. (In my original question I post the word for word explanation I was given for why my expenses did not qualify me for a credit)

 

Clearly the expenses are greater than the contribution, so this seems like a glitch to me, and I don't know how to address it.