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crujones
New Member

Is Dependent Care FSA only tax free if both parents work. I set aside 5000 with my company for day care and it is being added to AGI. My wife does not work.

 
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1 Reply
maglib
Level 10

Is Dependent Care FSA only tax free if both parents work. I set aside 5000 with my company for day care and it is being added to AGI. My wife does not work.

There are no reporting requirements for a FSA (Flexible Spending Account) on your tax return. 

FSA contributions are funded through a salary reduction (pre-tax dollars) by your employer. Because of the salary reduction, there are no taxes paid on the amounts. 

The limit is $5k for Married.

You should have only entered the w-2 as reported with proper codes, you should not have had to enter any other information....

Could you have entered something during the interview in error?

you cannot deduct qualified medical expenses as an itemized deduction on Schedule A (Form1040) if they were paid with pre-tax dollars from an FSA. possibly you entered something under HSA or in medical in error?

I am not a TT employee. I hope this helped?

**I don't work for TT. Just trying to help. All the best.
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