"Looking for work" only enables the FSA to the extent of her actual earned income. That is, day care expenses can be qualifying for up to 12 months of the year if she is actually paying for the care so she can be out of the house looking for work, but the maximum dollar amount allowable is whatever she actually earns. I'm afraid there aren't any loopholes that would allow you to get the money back if she doesn't get a job by the end of the year.
Some employers allow unused funds to be carried forward for 2 months into the next year. If your employer allows it, that gives you some extra time to find a job.
