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Retirement tax questions
Box 10 is the amount that the "employer" contributed in dependent care benefits. Yes, this is confusing, because you agreed to the contribution to the FSA to do this. However, it is listed as dependent care benefits from an employer, because the employer contribution and your contribution through payroll deduction are treated exactly the same - removed from Wages in box 1 on your W-2 before it is print.
The $4,583.26 that was in Box 10 is eligible to be used for paying for dependent care. But since this amount is tax-advantage (removed from your income), any amount that you did NOT spend on child care must be added back to your income.
Did you indicate that you spent $3,000 on child and dependent care coverage? Then this result pf $1,526 being added to your income makes sense.
However, I agree that there are some issues here that you will want to investigate:
1. Did you really agree to contribute $5,000 to your FSA? If so, ask your employer why box 10 had only $4,583.26.
2. Did you have only one child that you could have spent the FSA money on?
3. How much money did you actually spend on the child or children? I have to assume that if you set aside more than $4,000 for this, you must have spent more than $3,000, but TurboTax is acting like you told it that you spent only $3,000 with the rest being forfeited as unspent.
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