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Filing taxes with an FSA

Your quick guide to how FSA contributions are taxed. Good news: it's simple.

Written by Dave Stehler

Claiming the tax benefits of your FSA is built into how it works. Pre-tax funds are deducted from your paycheck, lowering the amount of income subject to tax for the year.

Do I need to report anything on my personal income tax return?

No. FSA contributions aren't subject to federal income tax, Social Security tax, or Medicare tax, so neither you nor your employer are required to report them to the IRS.

You'll usually not see the amount reported on your W-2, though your employer may choose to include it for informational purposes.

This applies to every FSA type

All FSA programs receive the same tax treatment, including:

  • Dependent Care FSA (DC-FSA)

  • Dental & Vision / Limited-Purpose FSA (LP-FSA)

  • General Health FSA

Spending restrictions still apply

No reporting is required for FSA contributions, but spending rules and restrictions still apply.

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