As I noted, there are two things in play here.
As for as the credit, the amount carried over will not factor in the calculation for the credit.
As for the deduction (exclusion) for the FSA, the carryover will not be taxed in 2020, on the assumption that it will be used in 2021.
When you enter your data into TurboTax, remember that the amount left over is entered in the W-2 interview.
If any of the box 10 amount is taxable, it will appear on line 1 of the 1040 with the code of DCB.
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