Child and Dependent Care Credit

[Merrily16]

My boyfriend and I file separate returns. He contributed to dependent care FSA ( Box 10 on w-2) to pay for our child’s preschool last year. I have been claiming my child on my own taxes prior to that. Would his dependent care FSA be taxed if he’s not able to claim her? 

[DawnC]

Yes, unless he has another dependent he is claiming and can apply the credit to.  

[sarah865]

Hey @DawnC 

So I have a similar situation, but with mine, I accidentally selected FSA Dependent Care and didn't know until I got my W2. So we lose the money we put into the account because the IRS or employer wont give it back, and we get taxed on it as well?

[RobertB4444]

The IRS doesn't have the money in your FSA, your employer does.  And if they have a 'use it or lose it' policy then you do indeed lose the money and get taxed on it as well.  I would definitely go see my HR department or pay some child care expenses right quick.

@sarah865 

[sarah865]

@RobertB4444 

Thank you for your help. This is truly disappointing. If only I could use it on my dogs bills, that would be great.

[RobertB4444]

Do you have a nephew or niece?  Or a friend's kid?  If they're just going to take it away from you you could use it for someone else.  It won't help your taxes any but it will at least use the money.

@sarah865