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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29975
Experience:  Taxes, Immigration, Labor Relations
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How is a Health Flexible Spending Account reported on taxes?

Resolved Question:

How is a Health Flexible Spending Account reported in a tax return (1040)? This if for 2005 and should I received some 1099 form from my employer or trustee or something similar?

Submitted: 10 years ago.
Category: Tax
Expert:  Lev replied 10 years ago.

Health Flexible Spending Account contributions are from pre-tax money and are not included into taxable income - thus the amount reported in the box 1, 3, and 5 form W2 do not include HFSA contributions. The HFSA contribution may be reported in the box 14, but it will not affect your tax return.

You will not receive any other reporting form.

If you are deducting medical expenses on your tax return - you cannot include expenses you have already received reimbursement with tax-free dollars through your FSA.

Please find mor e information here -

Customer: replied 10 years ago.
Reply to Lev's Post: I think this is like 90% still begs the question of what do I do on the 1040 or my return. Do I need to indicate that I have a Health FSA? If so where? Or is it transparent to the IRS, where they don't need to know. In other words, my reported wages from the W-2 reflect my actual wages minus the contribution to the FSA. And that is that, nothing else to do....thanks!
Expert:  Lev replied 10 years ago.

You are correct - your contribution to HFSA are not included into your taxable income on W2 and there is no need to report your contribution to the IRS on your income tax return.

Your distributions from HSFA are controlled by the administrator of your plan. The only your concern is that the same expense should not be deducted as medical expenses on your tax return and from HFSA.

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