Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Jan 26, 2023 2:12:33 PM

Is there income limit for me to benefit from FSA contribution I made in 2022?

I made contributions (and disbursements from my FSA account) in 2022, but when I add these contributions/disbursements my return doesn't change? I thought FSA is pre-tax, and as such, should lower my taxable income? which begs the question, is my income too high for me to benefit from pre-tax FSA deductions?

0 3 840
3 Replies
Expert Alumni
Jan 26, 2023 3:17:24 PM

No, your return is OK.

 

FSA dollars are not reported in your income, but neither are they reported on your tax return.

 

"when I add these contributions/disbursements" - Where did you report the contributions? On your W-2, your employer shows your Wages, and the FSA amount has already been removed. 

 

Where did you report the distributions? Medical expenses paid with FSA dollars should not be reported on Schedule A because they cannot be deducted again.

 

Or is this not a medical FSA? Or maybe it's an HSA?

Level 2
Jan 26, 2023 4:04:27 PM

This is a qualifying dependent FSA. I think the key thing that you said here is that "On your W-2, your employer shows your Wages, and the FSA amount has already been removed." I didn't realize that my employer already deducted my FSA contribution. If so, then we're all good. How can I confirm that? on my W2, box 1. it just says wages, tips, other comp. So how do I know that FSA has already been deducted.

 

Box 10 has the amount my dependent care benefit (contributions).

Expert Alumni
Jan 26, 2023 5:46:40 PM

Ask your employer. Only your employer knows how the numbers on the W-2 were arrived at before printing.