Section 129 - Tax Laws

[Guest amb]

Is anyone aware of the IRS tax laws regarding the Section 129 participation ($5K pre-tax) of an employee who is now divorced and a noncustodial parent? This staff person knows that they can claim the exemption for the child based on their divorce decree..., But, are there different rules that apply in determining the child as a *qualifying* person in this instance vs. when someone simply wants to use the dependent child care tax credit on their taxes? (up to $4800)

I have read the IRS Publication 503 (page 4) -- and it is not clear to me. We have called the IRS and they gave us a number for the IRS in Wash DC who deals with cafeteria plans.

Any help would be appreciated.

Thanks,

AMB