Update: The Form 2441 that is generated does seem to have the entire amount withheld in the current year treated as taxable. (Line 16 is limited to "qualified expenses incurred in 2021" so it is zero. So, the entire amount withheld drops down into line 26 and then gets added to 1040, line 1.) Is there any way to match up these funds with the expenses they were deducted to pay, so that this is properly treated as not taxed?
