My wife lost her job in fall 2022, so to make sure any medical bills were handled, I opened an FSA through my employer. This was a regular FSA account, but I was told that my wife could use it, since we are married. I chose the maximum contribution and it got us through most of 2023.
Now, because of my wife's student loans, she was told that we would need to file separately, otherwise she would have to pay higher interest on her loans and her payments would be significantly higher (We are talking at least $500/month difference). Since my wife used my FSA for her eligible medical expenses in 2023, would we be allowed to file separately? Are there any drawbacks to filing separately, other than the standard, "If you are married, you should file together to save money"?
