Welcome Guest. Register Now!  

For 2013 Tax Tips For Year 2013.

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-11-2013, 04:40 PM
Junior Member
Join Date: Nov 2013
Posts: 1
Childcare Flexible Account

I have a friend who just found out that kindergarten is not an eligible expense.

The problem is he has been putting money into his FSA account all year and it's almost at $5k now. He has been submitting claims all year and found out that they were all incorrect as his child is in kindergarten. They told him that for him to correct this they would have to correct all of the claims and he would have to pay back the money that the claims paid out. And it would go back into his FSA account, but he would not get this money back as it would go to his employer. So he would basically have to pay back about $3k and never get it back. He doesn't have $3k.

This is for 2013 so he hasn't filed his taxes yet. Does he have any other choice to correct this? Could he just file his taxes as if he never knew that kindergarten expenses weren't included? And if he was audited the worse case scenario is his taxable income would increase by $5k. So he would have $5k that he would have pay taxes on, and I can't see that ending up in $3k out of his pocket.

This all is terrible because he honestly didn't know any better. Any advice would really be helpful.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Why account is signed out every 3 seconds? BrandonMarx Feedback 0 06-20-2011 02:23 AM
IRA Account & Dividends tc93 IRA/Sep 1 02-04-2010 11:01 PM
What is a flexible spending arrangement? TaxGuru Miscellaneous 0 09-20-2009 08:36 PM
Closing a 529 account jpaatc Education Planning 1 08-05-2009 09:03 AM
Does a Trust Account need to file goodgirl49 Filing Requirements 1 04-15-2008 12:39 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning

» Recent Tax Q&A
No Threads to Display.