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Form 2441 FSA Maximum for MFJ?

jcash
Level 2

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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Just-Lisa-Now-
Level 15
Level 15

Yes, only one of them should be having the FSA for childcare, or only do 2500 each.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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3 Comments 3
Just-Lisa-Now-
Level 15
Level 15

Yes, only one of them should be having the FSA for childcare, or only do 2500 each.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
jcash
Level 2

Great.  thank you.

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Accountant-Man
Level 13

I guess they didn't speak to their tax advisor first.

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