Yes, you enter the actual amount that is carried over to 2024 (unused in 2023). If you did not pay for any childcare in 2023, even though you are allowed to use it in the grace period of 2024, the whole premise of being tax free is that it is used for childcare. If you do not use any in 2023, then the amount in your W-2 will be taxed.
When Dependent Care Benefit is reported in box 10 of your W2, you must file Form 2441 to reconcile the money used in the FSA as a qualified expense. If you do not have qualified expenses to offset the amount in box 10, it is added back to as income on your return. See the expiration below for the special grace period.
The temporary special rules for dependent care flexible spending arrangements (FSAs) have expired.
The temporary special rules under Section 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 that allowed employers to amend their dependent care plan to carry forward unused amounts from 2020 and/or 2021 to be used in a subsequent year have expired. For 2023, you may only enter on line 13 amounts you carried over from 2022 and used in 2023 during the grace period. See the instructions for line 13.
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