FSA dependent care carryover is taxed on 2020 return

[piniu]

My 2020 W2 box10 is $5000 from FSA dependent care. But I only spent $1000 in 2020. There is no where to input $4000 as 2020 carryover to 2021. I am using TurboTax Premier 2020. It says "The dependent care you must pay taxes on is $4000". Need help to fix this!

[BillM223 · Accepted solution]

To find the question about how much you had left over from the Dependent Care FSA, please revisit your W-2 interview, for the W-2 interview that had the entry in box 10 (for the FSA).

Once you enter the box 10 amount, TurboTax will wonder if you had an FSA, and so in the screens subsequent to the actual W-2 data entry screen, you will be asked if you had a Flexible Spending Account (FSA).

When you answer YES, the next question will be "Any leftover money in your Flexible Spending Account?" - this is the question you are looking for.

This is correct for the desktop software. The Online software is not always the same, but in any case, go back through the W-2 interview and see if the question pops up as I described.

Does this work for you?