Dependent Care FSA causes federal tax to increase when I enter the amount.

[Anonymous]

I contributed $700 towards Dependent Care FSA in 2021. I spent it all. However, I did not reimburse it until January 2022. So, my questions are:

1. What should I enter in "If you had any money left in your account at the end of the year, enter the amount here. If you used it all, just enter 0"? Do I enter $700 or $0? Based on the "Learn more" link, it is $0 since I will be (and got) reimbursed at a future date.
2. When I enter $0, my tax due goes up. When I enter $700, my tax due reduces? This is what is confusing to me. Shouldn't it be the other way?

How should I proceed from here?

[BillM223]

Are you using the CD/download software or have you paid for your return? I'd like to know if you can see your 2441.

If so, what are the amounts on line 10 and 11; and on lines 24, 25, and 26

Did you carryover anything in your FSA from 2020 to 2021?

[Anonymous]

I am using Windows download. 

Line 10 on 2441: 0

Line 11: Nothing. it is empty

Line 24: 0

Line 25: 700

Line 26: 0

I think when I fille the expense later in deductions, the tax due went back down. But my question is, do I enter $700 or $0 for ending balance in 2021? The article linked in Learn More is confusing and not clear. See my original question.