Two household FSAs

[Guest BruceC]

If a married couple's employers both offer an FSA, may each of them make a $5,000 max contribution to their own respective FSA's for dependent care = $10,000 annual total, assuming their qualifying childcare costs for the year are at least $10,000?

Thanks

BruceM

[oriecat]

No, $5000 is the max per couple. If they did sign up and do it that way, they would have to pay the taxes on their 1040 when they complete the 2441 Form.

[TPApril]

Howabout this situation - two single people are living together (thereby filing separate taxes), each with their own children. Can they each deduct $5,000 FSA for childcare on their respective children?

[jpod]

Is this a trick question? As long as the cost of care for their respective child/children can be substantiated), why are you questioning this?

[TPApril]

This is not my specialty, so no this is not a trick question. Employee in question has been told by FSA provider that only $5,000 per household so the answer is 'no., but in my inexperience I had said I thought they could each deduct $5,000 since they are separate children and they are filing individually.

[leevena]

This is not my specialty, so no this is not a trick question. Employee in question has been told by FSA provider that only $5,000 per household so the answer is 'no., but in my inexperience I had said I thought they could each deduct $5,000 since they are separate children and they are filing individually.

The $5,000 is per household, not individual/child.

[K2retire]

How is "household" defined? From the above answers it sounds like unrelated people who are room mates (as opposed to unmarried couples) would be considered a household, but I'm struggling to understand how the IRS would know to connect them, or how it is fair.

[Chaz]

To my knowledge there is no longer any concept of "household" in the DCAP rules. (I think there was until Congress overhauled the DCTC.)

A married couple filing jointly or an unmarried single parent can be reimbursed up to $5,000 per year. I believe that two unmarried individuals who live together and who each have their own child can get reimbursed $5,000 each.