I will have over $20K of childcare expenses for my 2 children for 2025 and I'd like to take advantage of both the Dependent Care FSA & the CADC credit. My husband is currently unemployed, but he will be starting a business next year. However, I do not know if he will make any income in 2025.
What happens if I contribute the full $5K to my DC FSA and he ends up not making income in 2025? Is there any penalties or does that $5K I contributed simply become taxable income, in which case I'm no worse off than if I hadn't contributed to the DC FSA to begin with?
