Question

2024 Wisconsin Additional Child and Dependent Care Credit is not calculating correctly

Forum|Forum|1 year ago
February 16, 2025
1 reply
0 views

They way Turbotax is calculating my Wisconsin Additional Dependent Care Credit for 2024 is wrong. Your software is not adding a tax credit to my state return like it should because I have a dependent care FSA.

I have one child with a total of $10k qualified expenses and a dependent care FSA benefit of $5k. You correctly calculate my federal credit at $0 because the FSA amount exceeds the federal limit of $3k.

However, the statute for Wisconsin in 2024 changed to allow expenses up to $10k for a single dependent. Turbotax is not recalculating my WI-2441 correctly and saying I also get $0 credit from the state which is plainly wrong. My state additional credit is actually $1000 (20% of the remaining $5k of qualified expenses after you account for the higher limits).

The mistake is easy to prove. If I change Box 10 on my W-2 to be $2995 for my FSA, Turbotax shows I get a $1 credit on the federal return and then you correctly calculate my Additional Wisconsin credit with the higher limits in 2024. But if I now change Box 10 to be $3000, the Wisconsin credit is completely removed. Having a $0 federal credit is causing you to not calculate the Wisconsin additional amount correctly.

Not impressed.

TurboTax Deluxe Online

K

KeshaH

If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all the states, if any, are included on the return.

B

barry_in_wiAuthor

1272753.

Wisconsin is the only state for the return.

K

KeshaH

Thank you for providing your token.

I've looked over your return and also reviewed the instructions to the WI-2441. Per the instructions, Form WI-2441 is heavily dependent on federal Form 2441.

The reason your WI credit is calculating as zero is because your income is not flowing to the WI-2441 on lines 7 and 8. These lines come from the Federal Form 2441, Part II.

You received tax-free dependent care benefits in excess of work related expenses of $3,000. As you mentioned, you would not qualify for the federal credit in this case. Because you don't qualify for the federal credit, Part II of your federal Form 2441 is blank.

The instructions to the WI Form WI-2441 (page 3) require that your earned income amounts be pulled from Part II of the Federal Form 2441. The TurboTax programming is written based on the instructions to the form. Since your Part II is blank, your income is not transferring to the WI form. Although the WI statute was updated to reflect higher work related expenses for the child care credit, your credit is being limited based on the function of the federal Form 2441 and the instructions to the WI-2441.