Where do I report contributions I made (as an employee, not employer) to a Dependent Care FSA?

[asker]

The W2 includes the amount I contributed to the DCFSA in box 10. However, Turbo Tax says "The box 10 should have an amount only if you have dependents and your employer paid for dependent care benefits." Since the money in the DCFSA was taken out of my salary, not an employer benefit, it doesn't seem like that box is appropriate. Appreciate your guidance!

[Opus 17]

Box 10 is correct. In the tax code, this situation is handled by the employee entering into a voluntary salary reduction agreement with the employer, and the dependent care assistance is provided by the employer.  That’s just how the tax law treats this type of benefit.

[asker]

Is this the case even if the box 1 wages don’t reflect that salary reduction? For example, say the employee’s salary is $50,000, contributed $5,000 to a DCFSA, and $10,000 to a 401k. Box 1 shows $40,000, boxes 3 and 5 show $50,000. If box 10 shows $5,000, then shouldn’t box 1 be $35,000? Wondering if it’s a mistake on the employer’s end. 

[Opus 17]

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@asker wrote:

Is this the case even if the box 1 wages don’t reflect that salary reduction? For example, say the employee’s salary is $50,000, contributed $5,000 to a DCFSA, and $10,000 to a 401k. Box 1 shows $40,000, boxes 3 and 5 show $50,000. If box 10 shows $5,000, then shouldn’t box 1 be $35,000? Wondering if it’s a mistake on the employer’s end. 

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Yes, in that example the employer made two mistakes.  FSA funds are not subject to social security and medicare tax but 401k contributions are (they are still considered earned income although you deferred the receipt of the income).

With a gross salary of $50,000, a $5000 DCFSA and $10,000 of 401k contributions, box 1 should be $35,000 and box 3 and box 5 should be $45,000.

If your W-2 is in error, ask for a corrected one.  There is a procedure you can use to file a return if your employer refuses to issue a corrected W-2, but you should not use that procedure unless you have asked for a corrected W-2 and the employer has refused.