Question

FSA Change to take advantage of Dependent Care Credit

Forum|Forum|4 years ago
January 26, 2022
1 reply
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Question:

I did an FSA for $5000 but doing so killed off $2,500 worth of Dependent Care Credit because I spent over 1300 in total for care. Can I change it now to add $5000 back into my taxable income so that my refund pays back the Federal tax and Medicare tax that I would have otherwise but then take advantage of the increased child care credit. Anyone know if this is possible?

ColeenD3

No, you can't retroactively back out of an FSA. In 2020, provisions were made for an employee to change mid-year, but you can't wait until you've had one the entire year and then change your mind.