I was just contacted by my employer in the last week of 2023 saying I was going to be taxed on $2441 of my $5000 contribution to my DCFSA. I did make more than $135k last year- but I’ve used this credit for 10 years and never have had this issue.
1. Is there any way to avoid this tax? It’s several hundred dollars
2. how do I account for it on my taxes?
3. how do I prevent it from happening again in 2024?
