Forfeited amounts are not taxed; however, if there is an amount not used for Dependent Care, it becomes taxable income. The purpose of the account is to set aside pre-tax money to be used for child care. It loses its pre-tax qualification if it is not used for that purpose.
[edited | 3.17.23 | 7:56am]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
