Deductions & credits

Hello @RobertB4444. Thanks for the response.

I think I was mixing up DCFSA Contributions and Dependent Care Credit with each other. I assumed that DCFSA contribution would need to be reported somehow in the "Child and Depended Care Credit" section to make sure that it does not get taxed.

Since DCFSA contribution is already excluded from income in W2 they are not taxable. If I would not have used it till the grace period I would have lost all the contributions. So they are treated non-taxable in 2023 itself and not using would have just resulted in all money being lost.

I just needed to report this correctly in TurboTax W2 section to get my federal tax lowered. After entering my W2 information. TT asks me this for DCFSA contributions.

I believe the answer here is No because my employer did not provide onsite child care service like onsite daycare etc. They just let me contribute to DCFSA.

Later on in the same W2 section it asks money left in the account. In learn more it says to include money which I am carrying over if my plan allow grace period. If I enter my total contribution as amount here TT does the calculation and reduces my federal and state tax. Earlier I had it set to 0 thinking it would be considered used even if I used in 2024 grace period. If I set it to 0 it increased my taxes. So I believe the right thing to do here is set the carry over amount in 2023 here even if I used it grace period.

Can you please confirm that this is correct? Which form and fields can I check in field view to ensure that DCFSA contributions are correctly being treated non-taxable in TurboTax?

Additionally going back to "Child and Depended Care Credit". Since I did not had any child care expense in 2023 I don't think I need to fill anything here. Although if I try to do it in TT and fill my expense as 0

TurboTax starts asking me care provider details

So I think the right thing here will be to not report anything here. Is this correct?