Medical Flexible Spending Account

I'd like to include all my 2010 medical expenses as part of my itemized deductions. Why doesn't Turbotax ask me if any of the medical expenses were paid for by a flexible spending account? If I include all the expenses, how can I show a "credit" for the medical expenses that were covered by my FSA? Can I deduct the FSA reimbursed medical expenses on my NJ State Tax return?
    You cannot claim medical expenses as part of itemized deductions that were already paid from an FSA.  You are suppose to subtract those out before putting the amount for your itemized deduction.
    • I'd like to ask a question similar to this (although, I'm in SC). So, if I've spent 7.5% of our salary on medical expenses but part of that 7.5% came from our flexible spending account, then I can't claim the rest as part of the medical deductions? Which means, I'd have to have 7.5% ABOVE what was paid out of my flexible spending account?
    • That is a good question. How do you separate out the items that were paid by the FSA from those that were paid out of pocket? Does TurboTax on-line offer any tools to help facilitate the process of matching FSA charges with the actual charge from the doctor, dentist, pharmacist, etc.?

      Does anyone have suggestions for a method to help us avoid itemizing FSA reimbursed expenses?

      I don't work (disabled) however my wife contributed over $6000 to our FSA and we used it all plus had additional expenses. Do I just put together a spreadsheet and check off each item that was paid from the FSA then sum the remaining ones that were not covered? Does anyone know of any software tools that help with this issue?

    @PianoGretch - Yes you would have to deduct the FSA amount 1st since you have already gotten a tax deduction on that at payroll time
      @A SteveInNJ - I just simply total all my medical expenses and then subtract the FSA amount ( assuming I used it fully ).
        I have 'FSA for medical' and have some money unused and was not able to claim.
        How can I claim this ?  TurboTax asked this only after 'childcare FSA', not for medical FSA.
        • i entered my fsa amount at the question about med insurance reimbursements.  seemed the only logical place.
        • Question: "Can I deduct the FSA reimbursed medical expenses on my NJ State Tax return?"

          I would say "Yes" because, unlike the other states, NJ treats contribution to flexible spending plan as taxable wages (see N.J.S.A. 54A:6-24 and Technical Bulletin 39, //
          As such, any amount withdrawn from FSA to pay for unreimbursed medical expenses should be considered as medical expenses in NJ.
          Obviously, we still have to meet the 2% income threshold.
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