I made a ~3600 contribution for 2023 DCFA and this money was used in 2024 as the care was received in 2024. This is allowed in my plan since the DCFSA 2023 timeline says that the expense must be incurred between Jan 1 2023 - March 15 2024 (grace period) and the deadline to file for receipt/claim is April 2024. I already filed the claim and received the payment from my plan admin.
See previous thread on this here.
Now I am wondering how to correctly report this in my 2023 filing. This 2023 DCFSA contribution shows up on my 2023 W2 in field 10 "Dependent Care Benefits".
How can I report this in TurboTax Deluxe Desktop version to ensure that it is not being taxed?
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Although your employer may still have a grace period to carry over to 2024, the IRS (Congress) has not continued this allowance. The answer is printed in your other question and placed here for you as well.
The temporary special rules for dependent care flexible spending arrangements (FSAs) have expired.
The temporary special rules under Section 214 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 that allowed employers to amend their dependent care plan to carry forward unused amounts from 2020 and/or 2021 to be used in a subsequent year have expired. For 2023, you may only enter on line 13 amounts you carried over from 2022 and used in 2023 during the grace period. See the instructions for line 13.
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