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Tax question about flexible spending account!!!!?


From 1/1/06 through 7/5/06, I participated in the gov't flexible spending account to pay for my daughter's afterschool and summer camp (apx. $2200/yr). $1100 was deducted from my salary pre-tax. 7/10/06 I started a new job, and I will never participate in a fsa again.

Her father claims her on his taxes, and will claim the child care credit for the second part of 2006. We are not married, he files head of household and claims her so that we get the earned income credit (he earns a good bit less than I do). I know how we need to do that. My question is... I file single using the 1040EZ, what do I need to do concerning the $1100 from the fsa? Will I need to use a different form? Any help is appreciated.

I usually file my own taxes, so please don't suggest asking my tax preparer. Thanks!!!!!

I don't think that you owe tax on that money.

I have used a health-care FSA for the last several years.
I cannot remember having to do anything special on my tax return for the FSA. I do my own taxes using TurboTax on the PC.

I don't think that you do anything with that $1100 number on your tax return. Look on your W-2, which is reported to the IRS. I don't think that it will be there. Now if you had a 401(k), the amount of money contributed DOES show up on your W-2.

A medical FSA works this way:
- Contributions are deducted from each paycheck
- If you leave before the end of the year, no more payments are deducted
- If you have an expense AFTER you are no longer employed, you don't get reimbursed
- If you use up all the money BEFORE you leave, you don't have to pay it back
So, if you could have paid for the whole year before 7/5/06, then started a new job, you would have paid only $1100 but spent $2200 and not have to make up the difference. As it is, you paid for what you used, so that's fair.
Thanks for the great answer.

ithink you are stuck in a unchangeable situation
Thomas K Is correct! The only direct connection with the FSA and your annual income taxes is the amount of your Taxable income reported on your W2 box 1 is lower.

Any money deducted by your employer for the FSA reduced your taxes in this maner.
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