Dependent Care FSA Tax Form/Logistics Question

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need403bhelp
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Joined: Thu May 28, 2015 6:25 pm

Dependent Care FSA Tax Form/Logistics Question

Post by need403bhelp »

Thanks, all, for your past help!

BRIEF SUMMARY: If I contribute to dependent care FSA in 2021, but don't have any eligible expenses until 2022 (this is ok with my plan as per modifications made for COVID-19), will this cause any problems when I am filling my 2021 tax forms?

LONG QUESTION: We recently had our first baby. Mother in law is here to help for 6 months, we are hoping to extend her visitor visa another 6 months so that she would be here until ~April 2022.

Work has dependent care FSA that runs 9/1-8/31. For 2020-2021 plan year date to incur eligible expenses extended to 8/31/2022 from 8/31/2021 due to COVID. I could potentially elect to contribute now due to birth of child and again during open enrollment to contribute >$5k in 2021, but we won't use it until April 2022. I have no experience with dependent care FSAs but understand that there are some forms that need to be filled in come tax time (vs health care FSA which has no such thing). Will it cause any problems to contribute to dependent care FSA in 2021 but have no eligible expenses in 2021 (only in 2022) when it comes tax time?

Thanks!!!
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