Question

Dependent Care FSA witheld on W-2, Box 10

Forum|Forum|4 years ago
March 31, 2022
1 reply
0 views

The IRS allows you to carryforward the amount withheld and not used in 2021 to 2022, if the Employer elects to allow such a carryforward. So, if in 2021, $2,000 was withheld for dependent care but you only used $1,000. The $1,000 not used would not be taxed and you could submit claims for reimbursement in 2022. The question is how do you input this amount of $1,000 into Turbo Tax so that the amount carried forward to 2022 is not taxed in 2021?

B

BillM223

In the W-2 interview, because you put $2,000 in box 10, you will be asked if you had a Flexible Spending Account (FSA) to pay for Child and Dependent Care. You, of course, will answer YES.

TurboTax then creates a new line with a box and asks what you had left-over at the end of the year. This is where you put that $1,000 that you did not spend. This amount should appear on line 25 of the 2441. If you previously had entered zero here and reported only $1,000 in expenses, then the other $1,000 would have appeared on line 26 on the 2441, as well as on line 1 (Wages) on the 1040 with the initials DCB to the left of the number.

Then, next year, TurboTax will know that you had a carryover and give you the chance to spend it in 2022, thus discharging it.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"