Dependent Care FSA

[mpsr1814]

Hi @members

While claiming dependent care amount, ($1900), I entered the wrong service date because of which I am not sure, if I will be able to claim the amount.

I am about to be filing for taxes so I am not sure how should I treat the amount

1) Should i deduct that 1900 from my income? as I still have not received the amount from my employer? IN this case, I would get some benefit since I will not be paying taxes for it?

Issue is  - if at a later point, after July 15th, If I get the amount then I would be paying less taxes for it?

[BillM223]

What does "wrong service date" mean?

Did you report that you paid in 2019 for services from 2018?

Are you saying that you paid the care provider $1,900 on 2019 but you have not yet been reimbursed from a dependent care FSA yet?

More details, please.

[mpsr1814]

Did you report that you paid in 2019 for services from 2018? - no, while filling the claim form I put the date of service as 2018 instead of 2019. This adds to the uncertainty if I would be reimbursed or not.

 Are you saying that you paid the care provider $1,900 on 2019 but you have not yet been reimbursed from a dependent care FSA yet? - yes that's true . I paid cash To her.

Another question- say, if I get the reimbursement from the company but  skip filling the 2441. I know it would mean losing on the tax deduction but wouldn't it make it less likely for an Audit? 

Thanks a lot

[BillM223]

If you expect to be reimbursed from an FSA, then you don't claim the $1,900 as a deduction. That's because the dollars put into the FSA were pre-tax. You enter this amount as money you spent, and it will be subtracted from the amount in box 10 (see next).

Did you have an amount in box 10 of your W-2? This should be the amount contributed to your FSA. I presume you do and it is as large or larger than $1,900.

Contact your employer and see if you can work out the date issue. Then file your return assuming that box 10 was more than $1,900 and that you were reimbursed the $1,900.

Note that any amount on box 10 of your W-2 not reimbursed to you is counted as income to you.

We in the Community really can't say if one thing or another would increase the chance of audit. Just try to get your company to agree to reimburse you by correcting your claim, and carry on.

Try to get this done before July 15th.

[mpsr1814]

Digressing a bit -out of curiosity

What if I get reimbursed the dollar but don't fill 2441 form while filing taxes?

1) Is it violation since while one agrees to file 2441 at the time of getting reimbursed?

  Will IRS consider it as an issue since it knows that money was put aside but the form 2441 was not submitted.

Will it employer know that 2441 was not submitted and will I have to give an explanation?

Again thanks for all the help

[VictoriaD75]

The reimbursement will likely appear in box 10 of your W-2. If you do not complete the Form 2441 to claim the offsetting expenses, the reimbursement will be included in taxable income.

Child and Dependent Care Credit

Publication 503