yes you can use your FSA to pay her medical expenses even if MFS. The downside to MFS:
- Fewer tax deductions and credits available, such as student loan interest - none allowed), education expenses (no education credits), and retirement plan contributions
- Higher tax rates and more tax due
- Half of the standard deduction compared to married filing jointly (for MFS both must use the standard deduction or both must itemize)
- $1,500 capital loss deduction limit per partner
- More complicated and costly tax filing process
- Individual responsibility for tax debt, penalties, and refunds
you really need to do a MFJ besides the two MFS to see if there is a real benefit to MFS. I would suggest one of the desktop apps since you can prepare the 3 returns for just one price and even do variations. you need a full PC or MAC and 64-bit operating system for windows - 10 or higher. Mac
macOS Monterey 12 or later (macOS Big Sur 11 not supported)
Specific macOS: macOS Monterey 12, macOS Ventura 13, macOS Sonoma 14
