@michiganner wrote:
Thank you so much for your kind reply. I actually have hired a nanny for a couple of month. However, I gave her cash and she didn't have receipt for me. I am wondering in this case can I get reimbursement from FSA?
The IRS charges the FSA administrator with enforcing the rules on reimbursements, they will probably want a receipt at the very least and may wants a W-10 from the nanny giving her social security numbers.
Then, when you file your tax return, you will have to provide the name, address and SSN of the nanny, or else the expenses won't be qualified, and will be added back to your taxable income.
(If you can somehow get the money out of the FSA, and don't qualify on form 2441, then at least you have paid the expense with taxable funds instead of losing the amount. But I would have gotten a W-10 from the nanny, even if that meant you paid her more to cover the taxes that she was avoiding by being paid under the table.)
