Yes, that is correct. The second spouse that does not claim the dependent care expenses (for a dependent on their return) will be taxed on their unused FSA contribution.
Some employers allow a non-taxable carryover to the next year, but the funds would need to be used the following year.
@michael1941
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
