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Level 2
posted Mar 13, 2024 10:15:45 AM

I missed the deadline in 2023 for the 2022 dependent care FSA submission and lost my 5K. Is there anything I can do to amend 2022 or recover in 2023?

I missed the deadline in 2023 for the 2022 dependent care FSA submission and lost my 5K (even though I had more than 5K in dependent care costs). Is there anything I can do to recover part or all by amending 2022 or in 2023 filing?

0 4 1539
4 Replies
Expert Alumni
Mar 13, 2024 10:34:51 AM

You are not likely to have access to 2022 flexible spending benefits which were unused in 2022.

 

Contact your employer's benefits department to see whether there are provisions within the company flexible spending account rules to allow employees access to unused 2023 funds

 

This TurboTax Help states:

 

On the other hand, you don't want to think of the flexible spending account (FSA) as a savings account. It is a medical benefit intended to finance your annual out-of-pocket medical expenses. You may lose whatever amount is left unspent in the account at the end of the year or early in the following year.

 

The use-it-or-lose-it rule is not carved in stone, however. The Internal Revenue Service (IRS) offers employers the option to allow employees until March 15 of the following year to use FSA funds from the previous year.

 

The IRS also permits employers to let their employees rollover up to $500 in unspent FSA money into the following year. These are not rules, but options available to employers, so check your company's policies.

Level 2
Mar 13, 2024 10:40:55 AM

Anything Tax wise I could do for 2022 or 2023?

Level 2
Mar 13, 2024 10:43:40 AM

Please note that this Dependent Care FSA and not regular FSA.

Expert Alumni
Mar 13, 2024 10:52:04 AM

If you paid for dependent care and did not claim the Child and Dependent Care Credit on your 2022 tax return you can file an Amended Return and claim the credit.  See the following for more information: 

 

What is the Child and Dependent Care Credit?  

 

How do I amend my federal tax return for a prior year?