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Why is my tax form including the $5000 dependent care benefit as part of my income. Shouldn't that be tax free from the FSA?

 
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CynthiaR
New Member

Why is my tax form including the $5000 dependent care benefit as part of my income. Shouldn't that be tax free from the FSA?

In order for the $5,000 FSA dependent care benefit to be tax free the day care expenses needs to be done.  Form 2441  Child Care Credit will take away that taxable FSA benefit.    You should receive a statement or form from the day care center itemizing the charges for the year,  their federal ID number,  address and company name.  

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1 Reply
CynthiaR
New Member

Why is my tax form including the $5000 dependent care benefit as part of my income. Shouldn't that be tax free from the FSA?

In order for the $5,000 FSA dependent care benefit to be tax free the day care expenses needs to be done.  Form 2441  Child Care Credit will take away that taxable FSA benefit.    You should receive a statement or form from the day care center itemizing the charges for the year,  their federal ID number,  address and company name.  

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