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April 7, 2025
Question

TT says I don't get the Child & Dependent Care Credit since my $18,200 in childcare expenses wasn't enough to use up my $5,000 contribution. This makes no sense, 18>5

  • April 7, 2025
  • 1 reply
  • 0 views
Verbatim Text: Why don't I have a Child and Dependent Care Credit? Since your $18,200 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 $2,000 of unspent care benefits will be added to your W-2 as taxable income.

    1 reply

    April 7, 2025

    How many children do you have in childcare?

     

    For one child, the max amount of work-related expenses you can claim for the credit is $3,000 and this amount has to be reduced by any tax free dependent care benefits that you received. Since you had $5,000 in benefits, you wouldn't qualify for the credit for just one child.

     

    For more than one child, the max amount of work-related expenses you can clam is $6,000 and this also has to be reduced by tax free dependent care benefits. In this case, you should qualify for a credit based on $1,000 of qualified expenses.

     

    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 and have your amended return open,

    - 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 other states that are included on the return.

    ross-ad2Author
    April 15, 2025

    Thanks, I have one child so that makes sense. TurboTax should probably be updated to explain that better.