Comments on: Dependent Day Care Flexible Spending Account (FSA)

By: MoneyNing

MoneyNing — Thu, 17 May 2012 02:36:58 +0000

I’m not sure there is a way, because it’s written pretty clearly in the IRS code that you forfeit unused contributions. You should definitely try to get the money back, but as I understand the rules, your employer or the company that handles the FSA account doesn’t have the authority to give you back the money.

The only way to get it back is if you are a qualified reservist, which only might apply if you were in military service during last year. If this is remotely applicable, I would search for The HEART Act (Public Law No. 110-245).

By: Benny

Benny — Wed, 16 May 2012 18:03:08 +0000

I contributed $5,000 for the dependent care expense. I have not got any letter to remind the claim period from my employer.
In April, 2012 while I am preparing a tax return, I realized that I need to claim it by Dec. 31st, 2011.
Although I appealed to HR, it was denied. I have the second chance (and the last ) to appeal in writing. Any of you have advice how to write a reasonable appeal letter? Otherwise, I am going to lose all my money, which is essential for my kids.

By: Sad Tom

Sad Tom — Mon, 07 May 2012 21:23:32 +0000

I signed up for Dependent Care FSA without knowing my wife had to work too. She is a stay-at home mom, but we enrolled our son in pre-school for the socialization, the kindergarden prep and to give her a little time off.

Is there any way to cancel the FSA, transfer it to my medical one or to get my money back?

By: Candy

Candy — Sat, 07 Apr 2012 05:59:14 +0000

On 2010, I enrolled the FSA account for $1500. However I was on owcp, so my employer couldn’t deduct any from my paycheck. I have $0 balance on all my paychecks. I called the FSA during the end of 2010. They said I could get any service because that is $0 amount on my account. Then, recently my employer are asking me to pay back $1500.00 out of my own pocket. The question is “Why do I have to pay $1500 to them, and instead I could claim this money back.

By: michele

michele — Tue, 27 Mar 2012 13:54:48 +0000

HELP!! I am in a FSA for dependent care, and have not used the daycare for a month. My company is telling me that I cannot get that money back, and I even have to keep contributing out of my own paycheck to the FSA for three more months. Is there any way I can get that money back? It feels like the compay is stealing from me !!!

By: James

James — Mon, 26 Mar 2012 19:30:14 +0000

I lost my job on Feb 10, 2012 and have $540 in flex spending/daycare expense. The year was to run from June 1, 2011 thru May 31, 2012. I have claims denied from Feb 6-12 and Feb 13-19 yet money was contributed on Feb 17. What can I do?

By: Arv

Arv — Wed, 14 Mar 2012 07:27:54 +0000

I had enrolled in Daycare FSA last year (2011) for plan year from July 2011 to Jun 2012. But my wife could not get any income last year hence not going to file tax. However she started her work from Jan 1, 2012.

What would be my case:
1. IRS says that we need to file return jointly, but not possible in my case. How to file tax with informing IRS about my true concern?
2. What is tax liability on me? My W2 show $2500 as a FSA contribution for this calendar year.
3. Should I claim amount from FSA deposit for my kid’s day care expenses?
4. If yes, Can I claim for this year (2011)?
5. My wife is working this year and plan year is valid till Jun 2012. Can I claim all ($5000) amount this year if I am not eligible to claim last year (2011).

By: Sharan

Sharan — Mon, 06 Feb 2012 18:38:37 +0000

Somewhat similar situation but in my case I continued the FSA with a new employer for the balance of the money. Now the new employer says expense was incurred prior to joining and hence cannot be reimbursed. Any advise?

By: Christine

Christine — Wed, 04 Jan 2012 00:15:14 +0000

My situation is as follow. I have started a new consulting business, so no income yet. Of course, I do want to make money and generate income in 2012 but no way to predict how this will all pen out. Does DCFSA penalize startup owners? I red it’s available for people looking full-time for a job, but what about people actually trying to create a living for themselves/starting a new business? And then, it said that you have to earn at least $5000/yr in order to claim DCFSA… so how would you be able to do this while looking 100% for a job (or developing a new venture)? Please help, I am confused!

By: MoneyNing

MoneyNing — Mon, 05 Dec 2011 17:39:43 +0000

I’m not a tax professional so you should discuss this with one but as I understand the current rules, money in the FSA can be paid to you as long as you aren’t claimed as a dependent on your children’s tax returns and your care is going to allow them to work (or look for work). You should also make sure that you report all income as it’s technically income so depending on your situation, it might not really be much of a benefit financially.