I used a Dependent Care FSA for 2023 and 2024. I file Head of Household and claim one dependent while my unmarried domestic partner files Single.
For 2025 I believe I erred by having my partner open the Dependent Care FSA instead of me, based on higher tax savings (she's in the 22% bracket vs. 12% for me as HoH).
In July she was laid off thanks to DOGE, and her DCFSA elections ended after $2,916.76 in daycare costs were reimbursed. I immediately claimed a Life Event to resume a Dependent Care FSA for myself, for the remaining $2,083.24 election.
Then I realized that I was following the rules as if we were married, but she may not have qualified for the DCFSA at all, given that I intend to continue filing Head of Household and claiming the dependent.
1) How do I make this right?
2) Does she have to add her DCFSA election back as income? How?
3) Can I still use the DCFSA this year? Could it be the full $5,000?
4) FICA double dipping??
The IRS literature does not seem to address DCFSAs directly, other than to provide for employers to create them.
