Dependent Care FSA roll over 2021

[gk2742]

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.

[gk2742]

Any help here ??

[Opus 17 · Accepted solution]

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.)

[gk2742]

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.