How to Report an Overpayment From FSA Account as Income

[DANINFL]

Just received a notice from my FSA provider stating they over paid me on one of the reimbursements. It goes on to say that if I do not return the money by check, I should include it as income on my tax return.

Does anyone know where I would enter this in Turbo Tax?

Thank you

[DianeW777 · Accepted solution]

Yes. You can report your excess/overpayment of FSA funds by using the steps below for 'Other Income'.

1. Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
2. Go to the last selection, Miscellaneous Income and click Start
3. Go to the last option, Other reportable income and click Start
4. When it asks, "Any other reportable income?" > yes and then type in a description and the amount to report it on your tax return.
5. TurboTax Online and TurboTax CD/Download will use the same procedure

[DANINFL]

Excellent !! Thank you!!