Dependent Care FSA contribution - married filing separately

[Acc23]

My husband and I file separately due to student loans. We have one child and he is in daycare. I have a dependent care FSA through my job and my husband does not. Since the 2024 maximum is $5000, can I claim that amount since only one of us is contributing and we file separately? Or am I stuck with only claiming $2500?

If only allowed to claim $2500 in this situation, but more than that is claimed, does the rest just become taxable income or is there a penalty of some kind?

[SusanC6]

The maximum contribution to a Dependent Care FSA  for married couples filing separately in 2024 is $2,500 per spouse. 

If you realize that you are going to contribute too much to your Dependent Care FSA, you could ask your employer if they would let you make an election to revoke your deduction, so you would not exceed the $2,500.   An employer is not required to allow you to revoke the election.

Box 10 your your W-2 will reflect the amount of Dependent Care benefits you contributed during the year.  If you are MFS, the excess of the amount greater than $2500, plus any amounts less than $2500 that were not used for dependent care expenses will be reflected as ordinary income on your tax return.  This calculation is reflected on Form 2441 Child and Dependent Care Expenses.

[Acc23]

Does that apply even if the other spouse is not contributing? Is it $5000 per household or $2500 per person regardless of filing status? Thank you. 

[SusanC6]

The filing status is what drives the $2500 limit.  

If you were married filing joint the limit would be a combined contribution of  $5000.  That contribution limit could be make by one or a combination of spouse contributions.  However, the total could not exceed $5,000 between the two of you.