Not Being Able to Benefit From a Dependent Care FSA
Divorced parents run into another set of problems when it comes to getting tax breaks for child-care costs. If your employer offers a dependent care flexible spending account, you can make pretax contributions — which lower your taxable income — and use the money to pay for care for eligible dependents. However, if you’re not the custodial parent, you can’t take advantage of this tax break, said David Du Val, vice president of customer advocacy at TaxAudit.com, a tax audit defense firm.
An eligible dependent typically is a child younger than 13 for whom you provide more than 50 percent support, who lives with you more than half the year and isn’t claimed by another as a dependent. Other dependents also might qualify. Even if you pay for some dependent care, you can’t benefit from an FSA if you don’t meet these requirements.