If you have an FSA for dependent care can you significant other still claim the child? I have an FSA but we believe my boyfriend will benefit more from claiming her.

[courtkchaon]

From my understanding if you don't qualify for EIC- whomever pays the most taxes benefits the most. He makes 110k/year, I make 60k/year. His job doesn't offer an FSA and mine does. I'm just concerned that when we file in 2019 I will be required to claim her since I signed up for the FSA. 

[JulieH1]

You are correct that the person that makes the most generally gets the most benefit from the child unless it is an EIC issue.

You can use HSA and FSA funds for medical care for yourself, a spouse, or a dependent.

 If you will claim the child as a dependent, you can use the pre-tax money in the FSA or HSA to pay for expenses.  If you don't claim the child as a dependent, you can't use the tax-free money to pay expenses or if you do, the expenses won't be "qualified" and you will owe income tax on the use of the money.

According to the rules from the IRS:

If you are living unmarried with the other parent of the child, only one parent may claim the child as a dependent on their 2017 tax return.  That is the parent who can also pay for medical expenses from an HSA or FSA or take the medical expense tax deduction or child care credit for expenses paid with after-tax dollars. 

 Assuming you and your partner will live together with the child, then either one of you can claim the child as a dependent, but not both -- a child may only be claimed as a dependent once. 

[keberle0889]

I was planning on claiming my daughter on my taxes this year, but it makes more sense for my boyfriend, her father, to claim her instead because he made more money than me. However I took a dependent care FSA for her daycare expenses, and now I can't figure out how to report that money as income? It doesn't show up anywhere on my w2 in any box.  Help!

[VictoriaD75]

Dependent care benefits (FSA for dependent care) should be reported in box 10 of your W-2. If you do not claim corresponding child care expenses on your return, the dependent care money should be taxable, as it was deducted pre-tax.