I get a subsidy from my retirement plan applied to my healthcare benefits premium (you get if you had atleast 10 years prior to retirement). The amount of 100.00 (or less if my medical premium is under 100.00) is added to my taxable income. Any medical expenses is taken off Schedule A which can include my premiums to include the benefit I received towards my medical premiums). The point I think is that FSA is not taxable until it is "spent". But if none of it was spent and you forfeited to zero balance at year end, there should be noting to report. In that case I would follow the advice given here for the work around in Turbo Tax.
