BillM223
Expert Alumni

Deductions & credits

Oh, I see that you found it...well, good for you!

 

Why is it not in federal income? Because the question in the W-2 interview is "what was in your FSA at the end of the year?"

 

If you carry it over to next year (which you can do now with all the law changes), then if you spend it next year, then it will be added to your income.

 

But note, if you do this, you will start with $1,200 in your account, so you'll need to reduce the box 10 amount (i.e., not contribute so much to it next year).

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