If you paid the provider $5000, and the provider issued you a refund of $200 (no matter what the reason was), then you only actually paid the provider $4800 and that is all you are allowed to claim as eligible expenses on your tax return.
The Secret Of FSA
- If you originally submitted a reimbursement based on a receipt for $5000, there is no particular provision in the tax code that would allow you or require you to return the refunded amount to the FSA.
- You will end up reconciling this on your tax return.
- If you received $5000 reimbursement but only had $4800 of eligible expenses, then the other $200 will be added back to your taxable income.
- There is no additional penalty for the situation.
For more information on this, Visit our office today to speak with a Generational Wealth Specialist for more information.
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