@madrcs wrote:
Is an FSA handled the same way?
Any money you set aside for an FSA is subtracted from your box 1 wages, so it is not taxable. Otherwise, it is ignored on your tax return. It is not reported anywhere (including your W-2), and you don't report expenses that were reimbursed from the FSA.
However,
if you are covered by an FSA, you are ineligible to contribute to an HSA, even if you are enrolled in a qualifying HDHP. An FSA counts as "other medical coverage" that disqualifies you from contributing to an HSA. Ineligible contributions must be removed and added back to your income tax, or are subject to tax and a penalty for every year they remain in the HSA.
