Where do I include the FSA reduction in taxable income using TurboTax or where on form 1040?
I have a FSA (Flexible Spending Account) for medical expenses set up with my employer. My employer does not include this reduction of taxable income on the W2's and are not required to when it is for a (Health) FSA.
Also, if this was a FSA for child care then my employer says they would be required to show the reduction of taxable income on the W2.
I believe you need to fill out form 8889 and then the deduction will go on line 25 of form 1040. But, you may want to go to www.hrblock.com because you can ask the tax professionals questions right online.
Flexible Spending Account and Dependent Care Assistance Program - Benefits for new employees Ch.9