Hey Tax Experts Community, I could use your valuable help one more time.
My wife and I work for the same employer, we maker about the same and even though we combine a large portion of our finances, we keep it 50/50.
We have a benefit at work called DCAP, some people call it Dependent FSA. We get to fund an account with up to $5k a year per household with tax free money for qualifying expenses, such as day care.
We enrolled last year (for this year) and each of us is contributing $2.5k to keep our finances 50/50. We are still under the $5K limit per household, it's just that it comes from two separate DCAP accounts.
Is it OK for us to do that?
I read the company handbook and the tax code and couldn't find this situation called out. I found that you cannot claim more than $5k per household and that you cannot double dip on the same expense, however, since we pay $15k in day care, we are not using our $2.5k to get reimbursed for the same receipt twice.
We are about to enroll for next year again, we don't want to enroll one person for the whole $5k because it's going to complicate our finances, it's just easier to do 50/50.
However, if someone were to put the whole $5k, how can we calculate how much after tax money the non-DCAP enrolled spouse has to reimburse the other?
Thank you in advance for your help.
