You must report the FSA on your tax return because it is reported in box 10 of your W-2. You must report the amount you were reimbursed for care expenses, the amount of your qualifying expenses (including the name of your qualifying dependent and the name and tax number of the care provider) and any amount that was left over in the account and either carried over to the next year or forfeit. If you don't report your expenses, it will automatically be added back to your taxable income.
