Get your taxes done using TurboTax

Turbotax will automatically handle this.  However, you do need to complete the program section for child and dependent care.  If you did not use the money and it was forfeit, there is a question about that.  It's not taxable and there is no penalty, you just lose it.  If you were reimbursed for care but you don't qualify because your spouse did not work, the reimbursement is not "qualified" and it will be added back to your taxable income, but there is no additional penalty.  Turbotax will do this all for you, just answer the questions.