@scottwilson222 wrote:
Thanks a lot for the detailed answser.
In my particular case, I have been in the U.S. for more than 5 years and am a "resident alien" for tax purposes.
My understanding regarding the "Child and Dependent Care tax credit" is that the person (child, e.g.) receiving care must be a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico so that s/he can be claimed as a dependent for tax purpose (According to Publication 501).
My question was does this same requirement apply to Dependent Care FSA? and where exactly this requirement is documented?
I am not aware of any reason that your child would not qualify both as a tax dependent and for the dependent care credit or FSA, as long as they have lived with you in the US for more than half the year (183 or more nights). The F-2 visa does not preclude them from being dependents because for children, that is determined by where the child actually lived and not by their legal residency status. The child would need an ITIN (international tax ID number) if they don't already have one.
(To apply for an ITIN, you would print your tax return and attach a form W-7 ITIN application, including any proofs required by the instructions. Mail the entire package to the IRS at the address for W-7 applications. After they issue the ITIN, they will process the tax return. To get by Turbotax's error-checking routine, you will need to give your child a fake tax number -- try 999-88-9999. The cover it with white-out on the printed return and write "ITIN applied for.")
