I have a dependent care FSA through work. In 2014, I did not use all of the funds, but I have until March 15, 2015 to do so. I will also have an FSA for 2015.

While I do my taxes through FreeFillableForms, I sometimes run my info through turbotax to double check my numbers. One of the questions it asks for the child care deduction costs reads:

Carryover from 2013 Used in 2014?

Enter the amount of any excess contribution that you carried over from 2013 that you used to pay qualified expenses during the grace period in 2014.

My questions are:

  • How does this impact the actual filling out of forms?

  • Does this change anything for tax year 2014, or will it only make a difference in 2015?

  • (For curiosity and completeness) Is there any difference in the tax impact of this scenario if this were a healthcare FSA instead? (Seems like they would be treated the same.)

Other details:

  • My carryover is relatively small, only $50.
  • My total FSA amount was about $4500 ... more than the $3000 allowance for the dependent care deduction I could take for 1 eligible child.
  • I actually have far more spending on dependent care than I had in my FSA, but due to only having the FSA for 3 months (changed jobs in September) and having a claim misinterpreted and being reimbursed for less than it should have been, I didn't get through all of my money. It was easier to spend the $50 in 2015 instead of spending hours on the phone getting them to fix the reimbursement.
  • I live in the US.

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