Pub 503 is for claiming the Credit.
Take this scenario:
Married couple, filing separately, one child. They each contribute $2500 to their own separate DCFSA accounts. Parent A pays childcare expenses Jan-June, Parent B pays expenses July-Dec. They both receive reimbursement for the full amount of their FSA accounts. They file taxes MFS; Parent A claims the child as dependent.
Are you saying that only Parent A should have received reimbursement? And that only Parent A is eligible to the tax deduction for the FSA amounts? That Parent B must pay taxes on his $2500 spent on childcare, reimbursed from his FSA?
I would love to see some citations for that if you can find them, because this is complicated stuff.
Note that I am not talking at all about the child care tax credit.
