FSAs are usually funded through voluntary salary reduction agreements
with your employer. No employment or federal income taxes are deducted
from your contribution. The employer may also contribute.
Note: Unlike HSAs or Archer MSAs which must be
reported on your Form 1040, there are no reporting requirements for FSAs
on your income tax return.
Also. you cannot deduct qualified medical expenses
as an itemized deduction on Schedule A (Form 1040) if they were paid
with pre-tax dollars from an FSA.
If you have any unused amounts in your FSA, that amount is forfeited,
and since you already got a deduction, you cannot deduct the loss.
