The 2022 Dependent Care FSA (DCFSA) limits were $5000 per household. My wife and I made a mistake and put $5000 for each of our employers, thus providing us with $10,000 in total DCFSA benefits ($5000 in excess or $2500 each in excess). How do we correct this? We were told mid-year that the FSA elections are irrevocable so we had to use the full $10,000 and then were advised to correct it on our taxes utilizing Form 2441.
On this forum I have seen two responses and am unsure how to proceed:
1) This is automatically reported on your W2 and then TurboTax makes the necessary calculations on Form 2441, so there's nothing to do manually.
2) In the "Wages and Income" section scroll down to "Less Common Income" and select "Miscellaneous" and then "Other Reportable Income." Answer "Yes" and for description enter "Excess DCFSA." Then for our case, my wife and I would each enter $2500 for an amount in the boxes.
Which option is the correct way to proceed?
Thank you.
