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How does unused dependent FSA funds affect taxes?
My dependent care FSA election for 2021 was $10,500. I only used $8,000. My employer allows a grace period through the end of 2022 to use the remaining 2021 funds.
When entering these numbers into TurboTax, it appears that I will be taxed on the $2500 carryover as income.
Is this correct?
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‎January 24, 2022
12:38 PM