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Old 12-11-2008, 09:50 PM
Mark Bole
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Default Re: Eligibility for dependent care FSA ?

JoeTaxpayer wrote:

- quote -

> dc2 wrote:
> > I have a question about eligibility for dependent care FSA. My
> > daughter is 3 years old and she goes to a day care and I do have their
> > receipts with EIN number. I have changed a job and my new company
> > provides a flexible spending account for dependent care upto $5000.
> > > But my wife doesn't work and she doesn't go to school either. I think

> > I read somewhere that I can't claim FSA for dependent care if I am
> > married and spouse doesn't work or not a student. Is it correct ?

> You read it right. The point of the FSA (and its tax benefit) is to
> enable both parents to work, go to school, or seek work.


Just one minor amplification regarding "seeking work" -- that is indeed
one activity that helps qualify the day care for special tax treatment.
But separately, each spouse must have actually *performed* some work
(have some earned income) at some point during the year, which could
come before or after the "seeking" activity.

Also, another detail: if you lived apart from your spouse the last six
months of the year and you are the custodial parent, you could claim the
credit (or use the tax-free FSA) without taking spouse's situation into
account. This is typically the case when you pay the household costs and
are filing as Head of Household even though still married.

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
Old 12-11-2008, 08:03 PM
JoeTaxpayer
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Posts: n/a
Default Re: Eligibility for dependent care FSA ?



dc2 wrote:
- quote -

> I have a question about eligibility for dependent care FSA. My
> daughter is 3 years old and she goes to a day care and I do have their
> receipts with EIN number. I have changed a job and my new company
> provides a flexible spending account for dependent care upto $5000.
> But my wife doesn't work and she doesn't go to school either. I think
> I read somewhere that I can't claim FSA for dependent care if I am
> married and spouse doesn't work or not a student. Is it correct ?


You read it right. The point of the FSA (and its tax benefit) is to
enable both parents to work, go to school, or seek work.
Joe

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 12-11-2008, 07:48 PM
dc2
Guest
 
Posts: n/a
Default Eligibility for dependent care FSA ?

I have a question about eligibility for dependent care FSA. My
daughter is 3 years old and she goes to a day care and I do have their
receipts with EIN number. I have changed a job and my new company
provides a flexible spending account for dependent care upto $5000.

But my wife doesn't work and she doesn't go to school either. I think
I read somewhere that I can't claim FSA for dependent care if I am
married and spouse doesn't work or not a student. Is it correct ?

-DC

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 

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care, dependent, eligibility, fsa
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