Hi,
Regarding your statement, “There is also no need for anyone to pay a penalty or to forfeit money in a dependent care account this year due to the coronavirus. The IRS has issued guidance that if a persons child care circumstances have changed due to the coronavirus, they may cancel or amend their dependent care election during the year, which is not normally allowed. Therefore, if you know you won’t be able to spend the money you can cancel the account for the year.”....is this really true?
My understanding is that just because you cancel/amend your dependent care election mid-year due to the coronavirus, money may no longer be deducted from your paycheck, however, you either have to claim a legitimate dependent care expense or forfeit any money that has ALREADY been deducted from previous paychecks. Is this accurate?
if not, how can someone “return” the amount that has already been deducted from previous paychecks?
