The only reason I see for including some of it in box 1 of the W-2 is if your employer contributed to the DCFSA. Not likely!
In my opinion, $5,000 should be reported as Excess or Other Reportable income.
A Flexible Spending Arrangement (FSA) is a special account you set up with pre-tax contributions to use for medical or dependent care expenses. These contributions aren't included in your taxable wages reported on Form W-2. You can pay from or be reimbursed from your FSA account as you incur expenses.
Hope this helps.
@chameleon
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