FSA paid by employee for Medical expenses in box 10 of the W-2 form

[taxmen2021]

On my W-2 in box 10 is recorded FSA deduction I paid for the medical expenses. Will  be it taxable on my tax return? That amount was deducted from the Box 1( Wages, Tips) already. How should I record not to be taxable when I will enter into software? Should my employer issue corrected W-2 form or it is possible to adjust in software?

Thank you

[Opus 17 · Accepted solution]

That is incorrect.  Only a dependent care FSA is reported in box 10.  A medical FSA is not reported anywhere on your W-2.  You need a corrected W-2.  If you file as-is, you will either have to:

1. Enter box 10, complete the dependent care interview, say you have no qualifying expenses, and the money will be added back to your taxable income and be taxed.

2. Leave box 10 empty.  This may result in your refund being substantially delayed because your tax return won't match the income reported by the employer.

3. File using a substitute W-2 form.  This may also delay your refund, and you should not do this unless you have contacted your employer, and they refuse to correct the problem, and you have that refusal in writing, to support your case when you are investigated. 

[taxmen2021]

Thank you Opus. I thought the same , the corrected W-2 form should be re-issued.