I apologize but I've read through this entire thread and I'm still confused. Here's the situation:
I have $5K in DC FSA. I've claimed $3K since my daughter used that funds for day care. Covid happened so I pulled her out of day care and my mother in law helped and we are paying her instead.
My mother in law is currently unemployed (for the entire 2020), and we are paying her. She doesn't live with us and is not our dependent.
From what I am reading, I do not have to give her a W-2. I can claim DC FSA with after paying her. What do I need to show to claim the money? Also, what does she need to do in her tax filing?
Thanks.
