Thanks. I have positive earned income, my wife’s sched c line 31 is 0. As a result my FSA payroll contribution pre-tax is being added back to my income (1040 line 1). In effect, the FSA is not longer tax advantaged so there is no value to doing it. Does this sound right? Everything I read about FSA eligibility is that both spouses must work or be looking for work.
When you say credit above you’re referring to a child care tax credit which is not at play for my particular situation.
