What should I do if I enrolled in a Dependent Day Care FSA, but our plans changed and my wife didn't work? How do I add this to TurboTax?

[jchancejr]

Because she did not receive an income I assume this will be taxable, but I don't see an option to add this

[AmyC]

If this was money the employer paid in, it will revert back to them. If this was pre-tax money you paid in, you lose the money as the account has no carryover. If you had used childcare service, only the amount paid in after tax dollars would qualify for a credit.

There is no additional penalty of adding it to your income since you have lost the money, you received no benefit. See Child and Dependent Care Credit & Flexible Benefit Plans

[Opus 17]

Turbotax will automatically handle this.  However, you do need to complete the program section for child and dependent care.  If you did not use the money and it was forfeit, there is a question about that.  It's not taxable and there is no penalty, you just lose it.  If you were reimbursed for care but you don't qualify because your spouse did not work, the reimbursement is not "qualified" and it will be added back to your taxable income, but there is no additional penalty.  Turbotax will do this all for you, just answer the questions. 

[jchancejr]

This was pretax dollars that I elected to put in (employer did not contribute) and I used it for child care. I'm wondering what I need to do to disclose this because I did pay for childcare which I reimbursed with the HSA account, but my wife did not work as she had planned to. I have gone through the entire TurboTax questionnaire multiple times and it has not asked me a single question about whether or not my spouse was working or looking for work (we file married jointly with children). Thanks for your help

[Opus 17]

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@jchancejr wrote:

This was pretax dollars that I elected to put in (employer did not contribute) and I used it for child care. I'm wondering what I need to do to disclose this because I did pay for childcare which I reimbursed with the HSA account, but my wife did not work as she had planned to. I have gone through the entire TurboTax questionnaire multiple times and it has not asked me a single question about whether or not my spouse was working or looking for work (we file married jointly with children). Thanks for your help

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If you submitted receipts and got reimbursed, but you don't enter qualifying care expenses, the reimbursement is added back to your taxable income on line 1e of form 1040.  This happens automatically.  All I can suggest is to look at form 2441 before you file, and look at page 2, line 26.  No one on this board can see your return.