FSA W2 Box 10

[Ned Devine]

I have a client with a W2 that does not have anything in box 10 dependent care.  They appear to have an FSA account because the earnings summary with the W2 shows a pre-tax deduction of $5,000.  Is there any reason that this is not shown on Box 10 of the W2 or is it just an error?

Thanks

[qbteachmt]

Dependent care is a different benefit.

[Ned Devine]

Are you saying that FSA Dependent Care Payroll deductions do not go in Box 10 of W2?

[The-Tax-Lady]

The employee has to specify the FSA$$ is for Dependent Care and the amount. If they just did an FSA without any specified amounts for Dependent care then there will be no amount in box 10.

How were the dependent care expenses paid?

[Ned Devine]

The employee paid dependent care provider.  Then the money was then requested for reimbursement with supporting documentation from the entity handling the FSA. 

I thought the cafeteria plan amounts had to be designated upfront whether medical or childcare. 

If no amounts in box 10 and the taxpayer has no additional childcare above the amount deducted from paycheck; do you still report the amounts paid to providers on form 2441?

[rbynaker]

See if you can piece together what happened from paystubs.  It could be as simple as an erroneous W-2.  Ooh, that reminds me, I haven't found a W-2 error yet this year.  Usually there's at least one every year...

I don't know that I've ever had a client who spent the exact amount on daycare as they contributed to an FSA.  Usually daycare expenses are much higher.  I did have some weird carryover issues with a few 2020 returns.