Will this count as a loss on my tax return?
I contributed more to my company's dependant care reimbursement program than I spent. Since I am losing money can this be counted as a loss on my tax return?
- Bostonian In MOLv 71 decade agoFavorite Answer
No, that money has already bybassed taxation going in to the cafeteria plan. Therefore there is no actual loss on your part.
Check your plan description though. Plans may allow payouts up to 2 1/2 months past the end of the tax year though not all do.
Any amounts left at the end of the plan year as extened are lost. It may be possible to pre-pay your costs for next year from the plan and thereby avoid the loss of funds remaining in the plan.
- JudyLv 71 decade ago
No, the loss is not deductible. Be careful next year to figure it correctly.
- countryguyhfcLv 51 decade ago
No. Since it was deposited in a pre-tax account you are not paying taxes on it already.