Mar 17, 2010 from
Anonymous
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I had $4000 in flexible spending reimbursements. Do I need to show that as income and be taxed on that? Isn't that money meant to be used tax free?
I've already tried...
Answers
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Mark Cummins, CPA has been a tax adviser and expert in tax issues for over 20 years. Specializing in small business and personal returns, I can prepare returns the same day in most cases. In addition, if you have a tax problem, audit, lien, garnishment, or any other tax issue, I can represent you and resolve your tax problem at a modest fee. View Profile
Yes, if you signed up for flexible spending reimbursements, and assuming you are a W-2 employee, your W-2 should state your wages less the $4000 in flexible spending dollars, which should have been taken out of your paycheck every month. So to answer your question, that money is tax free. So you do not show that $4,000 as income. Make sure your W-2 wages is indeed reduced by the $4,000 in flexible spending dollars. - Mark Cummins, CPA
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