@catsnrabbits wrote:
I didn't use all of my FSA for dependent care in 2020. Do I need to tell them the amount I really spent vs. what they took out? The difference is over $1000. I don't want to get in trouble for not telling them but I don't see a way to add this in Turbo Tax.
Turbotax will ask for the amount spent on qualified expenses and the amount forfeit in the account (or carried over to next year). The amount of the account is recorded in box 10 of your W-2 and picked up automatically. If your expenses were less than your account but the extra was forfeited or carried forward, it is not taxable to you. If you were paid out more than your qualified expenses, the unqualified amounts paid to you will be added back to your taxable income.
For example, $5000 DCFSA in box 10, you have $4000 of qualified expenses and $1000 was forfeit or carried forward to 2021. Nothing is taxable to you.
Just report all the facts correctly.
