unused dependent care benefits

[tax1111]

taxpayer has $5000 dependent care benefits in w2 box 10. She only used about 3000$ in 2020 and says the rest will be reimbursed for 2021 dependent care expenses.
I understand that forfeited DCB usually needs to be added back to taxable income. But as employers are allowed to grant grace period and flexibility for DCB for 2020 tax year, should we treat this unused DCB different from usual forfeited DCB, i.e., treat it as nontaxable?

[Yardley CPA]

Here's some more guidance on the topic:
https://www.irs.gov/newsroom/new-law-provides-additional-flexibility-for-health-fsas-and-dependent-care-assistance-programs#:~:text=As a result of COVID,end of 2020 and 2021.&text=Amounts spent by the employee,or dependent care assistance programs.

It sounds like you can treat the unused portion as nontaxable assuming the employer did amend their plan.