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DCB
New Member

What happens if you put in and take out too much into your Dependent Care FSA? (Two different jobs)

I moved to a new company this year and was putting $5000 a year or $192.30 a paycheck to my dependent care FSA. I left in Nov and started up a dependent care FSA with the new company. I think I miscalculated and might be putting in over $5000 this year to the FSA and might take out more than the $5000. What are my options and will there be a problem when I file taxes in April 2018? Company A allowed $5000 a year, Company B allowed $2500 a year. I am probably going to be $800 over the $5000 put into the accounts.

3 Replies
NathanS
Level 2

What happens if you put in and take out too much into your Dependent Care FSA? (Two different jobs)

At tax time you'll pay tax on any excess contributions over the $5000 limit for Married Filing Jointly/Single/Head of Household filers. Please see the Dependent care FSA section of https://en.wikipedia.org/wiki/Flexible_spending_account for more info.

2wheelmotoJ
New Member

What happens if you put in and take out too much into your Dependent Care FSA? (Two different jobs)

My wife's work told us we could both contribute and we didn't realize that 5k is the max per household, so we each put in and got reimbursed our 5k. With Turbotax online, is the additional tax we owe calculated automatically? Is there some place I need to report that I paid more than the 5k?

KarenJ2
Expert Alumni

What happens if you put in and take out too much into your Dependent Care FSA? (Two different jobs)

If the FSA account was for dependent care expenses, the software will take the excess contribution into account when you complete Form 2441, Dependent Care expenses, and the excess will be reported as taxable income.

 

 

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