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Taxdude2
Returning Member

Dependent care FSA late drop off

Hello, 

 

If we pre-paid dependent child care at a fixed amount for a fixed amount of time, and we use a little less of the time we pre-paid due to being late for drop off once in a while, do we have to deduct this amount from the FSA eligible expense or is it negligible?

2 Replies
Mike9241
Level 15

Dependent care FSA late drop off

ask the administrator whether they're eligible for reimbursement. 

Opus 17
Level 15

Dependent care FSA late drop off

The question is, what did you actually pay to the provider?

 

If you paid the provider $5000, and the provider issued you a refund of $200 (no matter what the reason was), then you only actually paid the provider $4800 and that is all you are allowed to claim as eligible expenses on your tax return.


If you originally submitted a reimbursement based on a receipt for $5000, there is no particular provision in the tax code that would allow you or require you to return the refunded amount to the FSA.  You will end up reconciling this on your tax return. If you received $5000 reimbursement but only had $4800 of eligible expenses, then the other $200 will be added back to your taxable income. But, there is no additional penalty for the situation.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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