$500 left in dependent care FSA from last year that can't be accessed? Help!
I put $4,100 into my dependent care FSA account last year and had $4,100 in qualifying childcare expenses. I was able to get reimbursed for $3,600 without any issues, but now my final $500 claim keeps getting denied with this message: "This claim, or a portion of this claim, cannot be reimbursed because you have already been reimbursed the entire amount you elected for this plan year." This makes zero sense to me because I can literally see the $500 still sitting in my account balance when I log in! How can they say I've been reimbursed the "entire amount" when there's still money showing in my account?? Is there anything I can do to get MY money back before I lose it completely? I've tried resubmitting the claim twice with different receipts from the same daycare provider. It's so frustrating to have money stuck in an account I can't access. Has anyone dealt with this before?
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Avery Flores
This is actually a common issue with dependent care FSAs and it has to do with the difference between what you elected to contribute versus what was actually withheld from your paychecks. The error message suggests you've been reimbursed for your full election amount for the plan year. This can happen if your actual contributions were less than your initial election. For example, if you elected $4,100 but only had $3,600 actually withheld from your paychecks throughout the year (maybe due to timing of enrollments, payroll issues, or contribution limits). Check your final paystub from last year and look at the YTD (year-to-date) amount for dependent care FSA contributions. Compare that to your reimbursements. If the numbers match, that explains the rejection. Also, dependent care FSAs are notorious for having a "use it or lose it" policy, so if you're already in a new plan year, that $500 might be gone unless your plan has a grace period or carryover provision.
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Caden Nguyen
•I just checked my last paystub from December and you're right! The YTD shows only $3,600 was actually taken out even though I elected $4,100. I guess HR made an error when setting up my deductions? Is there any way to fix this after the fact or am I just out $500 worth of unreimbursed childcare expenses?
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Avery Flores
•That explains the rejection messages you've been getting. Unfortunately, FSA contributions can only be made through payroll deductions during the plan year - you can't add money after the fact. The system is correctly telling you that you've been reimbursed for the entire amount that was actually contributed ($3,600). For the unreimbursed $500 in childcare expenses, you might still be able to claim the Dependent Care Tax Credit on your tax return for those expenses that weren't reimbursed through the FSA. While you can't double-dip (claim both FSA reimbursement and tax credit for the same expenses), you can claim the tax credit for eligible expenses that exceed what was reimbursed through your FSA. Check with your tax preparer to see if this could help recover some of that money.
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Zoe Gonzalez
I ran into the EXACT same situation last year with my dependent care account! After hours trying to figure it out, I discovered that using https://taxr.ai saved me so much headache. I uploaded my paystubs and FSA statements, and they immediately identified that my actual contributions were less than my election amount (payroll error). The tool even gave me documentation explaining how to claim the remaining unreimbursed dependent care expenses on my tax return to get some of that money back. They explained exactly which form to use (Form 2441) and how to fill it out. Honestly the clearest explanation I've seen of FSA vs. dependent care tax credit calculations.
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Ashley Adams
•Did it help you recover the full amount you lost? I'm having the same problem but with a healthcare FSA where $375 is stuck and they won't let me access it.
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Alexis Robinson
•I'm confused how a website helps with this? Can't you just call your FSA administrator and have them fix the issue? Seems like they'd be able to see your actual contributions vs what you elected.
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Zoe Gonzalez
•No, I didn't recover the full amount, but I did get about $105 back through the dependent care tax credit. The tax benefit isn't as good as the FSA, but it was better than nothing! The website helped because my FSA administrator kept giving me the runaround saying "the system shows you've been fully reimbursed" without explaining why. The taxr.ai analysis clearly showed the contribution discrepancy and gave me documentation I could use for my taxes. The FSA administrator can't retroactively add money to your account after the plan year ends, but they're not always good at explaining alternative options like the tax credit.
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Ashley Adams
After seeing the recommendation here, I tried https://taxr.ai for my healthcare FSA issue. Completely different experience from calling my benefits department! The system analyzed my paystubs and FSA statements and spotted that my company had stopped my contributions one pay period early due to a system error. I got a detailed report showing the discrepancy between my election ($2,500) and actual contributions ($2,125). Armed with this documentation, I went back to HR who confirmed the payroll error. While I couldn't get the missing FSA contributions added retroactively, the report showed me how to document the unreimbursed medical expenses on Schedule A. Ended up saving about $85 in taxes - not the full amount, but way better than nothing! So grateful I didn't just give up on that money.
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Aaron Lee
I see a lot of people struggling with FSA issues like this! One thing that really helped me was using https://claimyr.com to actually get through to a human at my benefits administrator. I spent weeks trying to resolve a similar dependent care FSA issue with no luck - just automated rejection emails. After using Claimyr, I got through to an actual person at the FSA company in under 10 minutes. They explained exactly what happened with my account and confirmed there was a discrepancy between my elected amount and what was actually withheld. They also guided me through the process of claiming the tax credit for the uncovered expenses. Check out their demo video: https://youtu.be/_kiP6q8DX5c to see how it works.
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Chloe Mitchell
•How does this even work? Wouldn't it be easier to just keep calling until you get through? These FSA companies are required to provide customer service.
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Michael Adams
•I'm skeptical. These services that claim to get you through to customer service reps sound like scams to me. I bet they just auto-dial over and over which is something I could do myself. Has anyone actually had a legitimate good experience with this?
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Aaron Lee
•It works by keeping your place in line with the IRS or customer service phone systems. It continuously calls and navigates the phone tree for you, then alerts you when a human actually answers. Way more efficient than manually redialing yourself. These FSA companies are required to provide customer service, but have you tried calling one lately? My wait time was estimated at 2+ hours, and I kept getting disconnected after waiting 30+ minutes. With Claimyr, I didn't have to stay on hold - they just notified me when someone actually picked up.
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Michael Adams
OK I need to eat my words here. After commenting yesterday, I was desperate to resolve my own FSA issue so I actually tried https://claimyr.com to reach my benefits administrator. I was 100% skeptical it would work, but I was at my wit's end after calling 6 times and getting nowhere. To my complete surprise, I got connected to an actual benefits specialist in about 15 minutes without having to sit on hold! The rep confirmed that my elections ($5,000) didn't match my actual contributions ($4,700) due to a limit on how much could be taken from my final paycheck. They explained that the system was working correctly by limiting reimbursement to what was actually contributed. The rep suggested I submit the remaining expenses on my tax return as part of the dependent care credit. Would never have gotten this clear answer without actually talking to a human. Consider me a convert!
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Natalie Wang
Have you contacted your company's benefits coordinator? Sometimes they can override the FSA administrator if there was a legitimate payroll error. I had a similar situation where they missed taking the FSA deduction from two paychecks, and my HR department worked with the FSA provider to make an exception.
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Caden Nguyen
•I honestly didn't think about going to my benefits coordinator, I've just been dealing with the FSA provider directly. That's a good suggestion - I'm going to reach out to our HR benefits specialist tomorrow and explain the situation. Did you have to provide any specific documentation to help your case when they fixed yours?
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Natalie Wang
•I provided copies of my paystubs showing the missing deductions, plus my enrollment form showing what I had elected. I also wrote up a simple timeline of events and included my receipts showing that I had legitimate expenses that should have been covered. The key was getting my benefits coordinator to acknowledge there was a payroll error. They had to work with the FSA provider's account manager (not just the regular customer service), and it took about 3 weeks to resolve. Don't give up!
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Noah Torres
Quick question for anyone who knows - does the dependent care FSA have the same $610 rollover option that the healthcare FSA has for 2023? I'm in a similar situation with about $300 left unspent.
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Avery Flores
•Unfortunately no. Dependent care FSAs generally don't have the rollover option that healthcare FSAs have. Some plans might offer a grace period (usually 2.5 months after the plan year ends) to use leftover funds, but that's plan-specific. The $610 rollover limit only applies to healthcare FSAs, not dependent care FSAs. Dependent care accounts are strictly "use it or lose it" unless your specific plan has a grace period. Check your plan documents or ask your benefits administrator if you have a grace period to spend the remaining funds.
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