The plan was that my husband would get a job, but that hasn't happened. He did recieve unemployment benefits. What happens now? I have submitted the receipts and the depentent care has occured. How will this play out when I file my taxes for 2013?
I signed up for Dependent care FSA, but my spouse did not find a job in 2013?
Nov 14, 2013
2 Replies
You will end up adding the amount back into your wages. See Publication 503 and Form 2441.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
To expand on Phil's response... The rules require that a married taxpayer use the lesser of their own earnings or the spouse's earnings. If your husband had no earnings then as Phil said, the DCAP money will be taxed. If he happened to work part-time, then those earnings would be used and some part of the DCAP benefits would not be taxed. There is also an exception for individuals who attend school full-time. This is explained in the documents Phil references.
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