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First, when you put money from your paycheck into Dependent Care Benefits (generally a Dependent Care Flexible Spending Account (FSA)), you did not pay income taxes on these amounts. They were taken out before all other taxes which means you saved not only income tax, but also Social Security and Medicare which is an additional 7.65%. Therefore ...
As expenses are incurred you can pay from or be reimbursed from your FSA account. Amounts contributed to an FSA are not subject to federal income tax, Social Security tax or Medicare tax, allowing your medical or dependent care expenses to be paid with pre-tax rather than after-tax income. [Edited 2.16.18 / 3:17 pm]
In order to exclude the dependent care benefits or claim the child care credit your spouse must have actually found work and had income during the tax year. The requirement stated in the IRS instructions for Form 2441 is the following. "The care was provided so you (or your spouse if filing jointly) could work or look for work.
Hi everyone, My $5000 in Dependent Care benefits (Box 10) are being added to my taxable income. I have reviewed the Dependent Care Credit section several times, and there is no space to enter the amount my wife and I paid for dependent care last year. Help! Thanks, Ian
messner8000. Level 1. Child and Dependent Care Credit - Credit, but amount below Flex Spending. I have a $10,500 dependent care flex spending account. I entered this information in TurboTax. I then filled out the section on Child and Dependent Care Credit. I entered $10,000. There is a Note that says "You have $10,500 employer-provided benefits.
On a much related note to the "FSA/child and dep. care credit/box 10 dependent care benefits pool," putting $5000 into/toward the FSA REMOVED the $600 credit ($3000x.2) in exchange for $732 of tax relief (at 14.64% ETR), leaving us with a net $132 savings, or .0264% on that $5000 for the hassles involved with monthly claims and tax-time grief.
To get the expenses on Line 16, you enter the expenses in the Child and Dependent Care Credit section of TurboTax. You can enter those expenses which will reduce the amount of Box 10 that will be added back to your taxable income. So, even if you don't qualify for the credit, you can still apply the expenses to the excluded wages in Box 10.
Box 10 is for the dependent care FSA contributions for the year. Unless you have childcare expenses during the year that qualify to offset the amount, then it becomes taxable income. If you used the money to pay for Dependent Care Benefits, then during the W-2 interview process, on the pages that follow entering the actual boxes, you need to ...
Level 15. In order to get the childcare credit both spouses have to work and earn income. The "looking for work" part is often misunderstood to mean just seeking employment means you can get the credit. Not so. She has to actually become employed and earn income in order to qualify you to get that childcare credit.
To amend your return, select your product and follow the instructions. TurboTax Online. Note: If you have a state return, also select 2022 state return and go through the state amendment steps. To amend your state return, go through these steps: Note: You may get a Not Eligible for Electronic Filing screen. This is normal for those states that ...