@ssam2020 wrote:
thank you. i am aware of IRS publication 503. for personal reasons we cannot file jointly and it feels unfair for not being able to claim dependent care credits when i am paying for it while going to work to make a living. Will using an FSA help with getting a tax deductible/credits? well, i am looking for a solution/option here to get those credits rightfully.
Fairness doesn't usually enter into laws made by Congress. I suppose they had a good reason to deny the dependent care credit to MFS, but you would have to ask them (probably back in 1986).
You can use a tax-free dependent care FSA to pay for care expenses even when married filing separately. However, the maximum deferral is $2500, and only the spouse who claims the child as a dependent can get the tax-free benefit. If the other spouse uses a DCFSA, or if the spouse who claims the child has reimbursement more than $2500, the unallowable portion is added back to their taxable income, although there is no additional penalty for doing this. If your qualified expenses are more than $2500, there is no additional credit (you are disqualified). All this is reconciled on form 2441 and Turbotax can correctly handle this situation on an MFS tax return.
