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gk2742
Level 1

Dependent Care FSA roll over 2021

I've contributed $3000 to dependent care FSA in 2020. I've paid a $1000 for day care. My employer allowed me to carry over the unused balance, $2000, to next year based on Covid relief bill passed at the end of 2021.

However, Turbo tax online is showing that remaining $2000 dollars as taxable income. Where, in turbo tax, do we specify that $2000 dollars is not taxable income as it has been rolled over to 2021.

1 Best answer

Accepted Solutions
Opus 17
Level 15

Dependent Care FSA roll over 2021

You missed a question at some point.  Turbotax will ask how much did you forfeit or roll over.  Because you skipped that question (or answered "zero" incorrectly), the program assumes the entire $3000 was paid out to you.

 

I would re-run the dependent care credit interview.  The question might also appear in the W-2 interview when Turbotax recognizes an amount in box 10.  (I can't remember from the last time I had a DCB and I haven't tested it this year.)

*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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3 Replies
gk2742
Level 1

Dependent Care FSA roll over 2021

Any help here ??

Opus 17
Level 15

Dependent Care FSA roll over 2021

You missed a question at some point.  Turbotax will ask how much did you forfeit or roll over.  Because you skipped that question (or answered "zero" incorrectly), the program assumes the entire $3000 was paid out to you.

 

I would re-run the dependent care credit interview.  The question might also appear in the W-2 interview when Turbotax recognizes an amount in box 10.  (I can't remember from the last time I had a DCB and I haven't tested it this year.)

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

View solution in original post

gk2742
Level 1

Dependent Care FSA roll over 2021

It is in the W2 interview. It asked for any amount remaining in the account. When I entered the remaining amount it didn't add the unused funds as income.

I was earlier searching in expenditure section. But thank you for solving  the issue.

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