jcash
Level 2
03-25-2024
09:31 AM
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My clients both had dependent care deduction of $5k each (2 dependents). Totaling $10k. It appears they are only eligible to take $5k between the 2 of them. Therefore, $5k is added back as income. I'm surprised I haven't encountered this before. As a result, they end up owing $1400 but if I exclude $5k they would have only owed about $300. Just doing a reality check that I should advise them to only have $5k taken out in FSA since the other $5k will get added back in (for future years).
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