My apologies if I am misunderstanding this. I participated in flex dependent expense plan through my employer. They deducted the amounts in each paycheck - therefore I did not pay any taxes on it. However, when filing my taxes via turbotax, it appears to add it back into W2 wages via form 2441 and placed on line 1....essentially creating a larger taxable income. Why is it added back in? Or where do achieve the benefit? It looks like it just deferred my tax liability until tax filing. Hope this makes sense. Thanks.
