Dependent Care FSA error, unmarried partners: The wrong person opened it

[simonpeter6]

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.

[Mike9241]

the OP needs to do nothing presently. The DCB will show up in box 10 of their w-2 and since she has no qualifying expenses will end being added back to taxable income. line 1e of 1040.

as to where you can contribute the remaining amount to your DCB account, ask your employer. 

[Opus 17 · Accepted solution]

If person A has a DCFSA but does not claim a qualifying dependent on their tax return, the amount will be added back to their taxable income.  There is no additional penalty for this situation and the add-back will be done automatically by Turbotax.

If person B claims a qualifying dependent and files as single or HOH, person B can have a DCFSA of up to $5000.  The issue is whether your employer will allow you to change the amount (they probably won't or can't allow it unless you are still within the 60 day eligible window from a qualifying life event). 

If your income is more than $15,000, you could never allow your unmarried partner to claim your biological child as a dependent, even if you wanted to.  

There is no issue with FICA.