My husband and I got advice from a tax advisor last year that I am now worried is inaccurate. I’m hoping someone on here can help us understand.
My husband and I filed taxes as MFJ for 2025. I started a dependent care FSA through my employer in January 2026 (so only a few months in). I opted for the maximum election ($7500 for MFJ). My husband did not sign up for his employer’s dependent care FSA.
We desperately need to file our taxes as MFS for 2026 due to my student loans (he has no student loans thankfully). Will we be able to file as MFS for 2026 because I have the maxed out dependent care FSA? Is there anything I need to / will be able to change? Any penalties?
Any information would be great. We pretty much have to file as MFS for 2026 so we don’t go under when student loans resume. Like I said, we went with what our tax advisor said thinking that was accurate information, but now I’m concerned that she was wrong. Thanks in advance!
Posted by ovaryactionnn
2 Comments
MFS limit is 3750. Excess over 3750 will be taxed as wages.
you can still file MFS, but the dependent care FSA limit changes pretty drastically when filing separately
for MFS it’s generally $2,500 instead of $7,500 total
usually what happens is the excess amount ends up becoming taxable income again instead of staying pre-tax. so not necessarily some massive “penalty,” but more likely extra tax on the over-contributed portion
honestly this is one of those situations where i’d probably talk to a CPA before year end instead of waiting until filing season. sometimes payroll can stop future contributions early enough to reduce the mess a bit