@RNic
The other thing we have to do is look at form 2441 on your 2020 tax return. However, I think you are out of luck.
The dependent care credit is limited by law to expenses incurred during the tax year. That means that you only have eligible expenses in 2020 and not 2021. You would need to report in TurboTax that you had a $1000 FSA, that you did not forfeit it, but that you had no qualifying expenses. The $1000 will be added back to your taxable income. However, there is no penalty for this situation. (And in fact, you come out a tiny bit ahead anyway, because the FSA deduction was not subject to Social Security tax and you don’t have to pay that back, so you are about $75 to the good.)
Depending on your overall expenses for calendar year 2020, you might have claimed an additional credit on form 2441 for expenses that had not been reimbursed by the FSA by that point.
But I think in this case, the law and your employer‘s policy work against you.
