I am getting critical diagnostic Ref 51763. The client should NOT be treated as unmarried and should only be excluding child care benefits. How do I clear? Thank you!

readmanntax · ‎12-07-2019

My client is MFS and lives with his spouse. He receives $5,000 in child care benefits from his employer and I would like to exclude $2,500 of these benefits from income. I am getting the following critical diagnostic:

"Dependent care credit is not allowed for MFS taxpayer who is not considered unmarried for purposes of the dependent care credit. If the taxpayer should be treated as unmarried for purposes of the credit (see Form 2441 instructions), enter a "1" in "Married filing separate and treated as unmarried" .

I am not trying to claim the credit, only trying to exclude $2,500 in benefits from income. How do I clear this critical diagnostic to allow for e-signature and e-filing? Thank you!