FSA Deductions

[gsaxena2]

Hello,

I opted to contribute $1000 towards my dependent care FSA in 2022.  My spouse did not work in 2022 and hence no earned income from my spouse. I have following questions:

Since there has been no tax withholding for my $1000 contribution, what I need to do to add $1000 to my taxable income in my tax forms?

I did incur child care (preschool expenses) in the amount of $1850.  The child care center provided me an account with Brightwheel through which I paid my child care expenses.

Should I reimburse myself $1000 from Brightwheel since I do have FSA contribution in the amount before Dec 31st ? In this event, Brightwheel will send me form 1099 K.

Or should I not reimburse $1000 from Brighthwheel? Since my spouse did not work.

Am I eligible for child care tax credit for the amount of child care expense ?

Thank you!

[NCperson]

@gsaxena2 reinburse yourself - it is your money, it's "use it or lose it". 

When you complete your tax return, the $1,000 will be added back to your income (to reverse the deduction of your W-2 income) as you were not eligible for the FSA.  Just answer the TT prompts - it will know you had the FSA because of the Code W in BOX 12 of the W-2.  

[gsaxena2]

Sorry for replying this late. Thanks @NCperson