Will there be an issue if I had a dependent care FSA pretax deduction for my son but am not claiming him this year?

[Dcd]

I had $4000 pretax taken from my wages in 2018 but my fiancé and I decided last minute he would actually be claiming our son. Is there going to be a possible issue if I cannot justify the dependent care credit because my son will no longer be on my return. Is there any other form I may need to fill out?

[CynthiaR · Accepted solution]

If there are no day care expenses being claimed on your taxes then the FSA for $4,000 will be added to your income as taxable income.   Your wages were reduced by the $4,000 so now with this FSA was not used it has to adjust your wages up by that amount.

[Dcd]

Is this automatically done by the TTax software?

[CynthiaR]

yes it would be automatic