I am filing MFS (but married and living together by IRS defintion) and contributed $2500 to a dependent care FSA. It was all spent on child care. However spouse is claiming child as dependent and taking the child tax credit. I live in a community property state.
Does that make my contributions taxable after all?
Filling out Form 2441 I get zero on line 26 and the $2500 comes out on line 25, so I can't see that the contributions gets added back to my taxable income, on account that they were spent on child care.
Dependent Care FSA – taxable if no dependent claimed?
byu/_AS123_ intax
Posted by _AS123_