First it is not a lie to not enter the child ... the child is a qualifying child for 2 people and if you are not the one going to claim the child you should not enter them in the program at all ... I admit the program is a bit lacking in this section as it does not explain it well.
Next, for the FSA ... sorry but you lose this benefit because you do NOT have a qualifying child on the return ... another reason for looking forward to determine the best situation for all parties involved.
As for the HSA and health insurance ... you do not need a dependent to have either in a family plan since you could have a 25 year old on your insurance and not claim them on your return.
I highly recommend you BOTH seek local professional assistance to get educated on your options for claiming common dependents. Only by reviewing both returns with and without the child can you see the best filing for all involved.
