Unlike HSAs or Archer MSAs which must be reported on your Form 1040, there are no reporting requirements for FSAs on your income tax return.
FSAs are generally "use-it-or-lose-it" plans. This means that amounts in the account at the end of the plan year can't generally be carried over to the next year. However, the plan can provide for either a grace period or a carryover. The plan can provide for a grace period of up to 2 1/2 months after the end of the plan year.
FSAs are usually funded through voluntary salary reduction agreements with your employer. No employment or federal income taxes are deducted from your contribution. The employer may also contribute.
Also. you cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form 1040) if they were paid with pre-tax dollars from an FSA.
If you have any unused amounts in your FSA, that amount is forfeited, and since you already got a deduction, you cannot deduct the loss.
Please see Flexible Spending Arrangements (FSAs)
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