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FSA Expense

I spent about $6000 from my dependent care FSA, but I don't any place under "You and Your Family" section to fill in the expense and now  $6000 is added on to my Wages incomes.

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1 Reply
BillM223
Employee Tax Expert

FSA Expense

1. Did you have an entry in box 10 on your W-2? This is your 2021 contribution to your dependent care FSA.

 

Because the law was changed on the amount of FSA carryover, a lot of taxpayers didn't contributed any FSA funds this year but were planning to just use the carryover.

 

But if you don't enter anything in box 10 on the W-2, then TurboTax doesn't know that you need to go through the Dependent Care section under Deductions & Credits.

 

2. So if this is the case for you, you need to go there manually. Go to Deductions & Credits->You and Your Family->Child and Dependent Care Credit and click on Start (or revisit or whatever).

 

Run though that interview. 

 

You might notice that you are never asked about your carryover of FSA funds (if any). If so, you will need to go back to your W-2, enter $1 in box 10, and then go through the Child and Dependent Care interview again to force TurboTax to ask you if you carried over any FSA funds from 2020. Yes, this is a workaround, necessitated by the huge amount of changes to this tax law during last tax season.

 

 

3. See how that works for you.

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