employer contributed to dependent care FSA but I had no claims. TurboTax is asking for provider details in final review form 2441

[maple1202]

It is use it or lose it but, I don't think I've run out of time to file claims yet.

[maple1202]

This allowed me to remove the form 2441. the federal review passes.  How do I check that the $1200 is not counted as income?

Thanks  

[BillM223]

OK, I have finally gotten it to allow you to delete the 2441 and still pass the Review.

Go to Deductions & Credits->You and Your Family->Child and Dependent Care Credit.

When it asks you "Did you pay for child and dependent care in 2020?", stop a minute.

Go in to Forms mode and delete the 2441.

Then answer NO to that question about did you pay for care.

This passed the Federal Review and the Final Review in the desktop product - I hope it will for Online. Unfortunately I can't test e-filing, but I am hoping for the best.

[BillM223]

Oh, I see that you found it...well, good for you!

Why is it not in federal income? Because the question in the W-2 interview is "what was in your FSA at the end of the year?"

If you carry it over to next year (which you can do now with all the law changes), then if you spend it next year, then it will be added to your income.

But note, if you do this, you will start with $1,200 in your account, so you'll need to reduce the box 10 amount (i.e., not contribute so much to it next year).

[DiddlyD]

I get a subsidy from my retirement plan applied to my healthcare benefits premium (you get if you had atleast 10 years prior to retirement).  The amount of 100.00 (or less if my medical premium is under 100.00) is added to my taxable income.  Any medical expenses is taken off Schedule A which can include my premiums to include the benefit I received towards my medical premiums).  The point I think is that FSA is not taxable until it is "spent".  But if none of it was spent and you forfeited to zero balance at year end, there should be noting to report.   In that case I would follow the advice given here for the work around in Turbo Tax. 

[BillM223]

@DiddlyD

You are talking about a health FSA; the discussion above has all been about a dependent care FSA, which is not the same thing.

There are no reporting requirements for a health FSA - you don't report either your or your employer's contributions to the health FSA, and you don't have to report any distributions to pay for medical expenses.

However, if you have a dependent care FSA, especially with an entry in box 10 of your W-2, you must report this to show how you spent the dependent care FSA funds, and depending on how they were spent, some of that box 10 amount may be taxable.