Contributions deposited to an FSA are NOT taxable for Social Security, Federal and most State taxes. Local taxes depend on the municipality to which you pay taxes. City tax is generally not payable in Ohio. Your Social Security benefits may be slightly reduced because of participation in the program.
If you participate in the dependent care FSA, Box 10 of your W-2 will automatically reflect the amount contributed for the year. There isn’t W-2 reporting required for the health FSA.
Category:
FSA & Taxes