Have a Tax Question? Ask a Tax Expert
I know you will not like the answer...
Sorry to be a messenger.
The treatment for the dependent care flexible spending account depends on whether you’re a custodial parent or a non-custodial parent.If you are the custodial parent – the child is a qualifying individual even you release the claim to the non-custodial parent. You can be reimbursed under a dependent care FSA.If you are not the custodial parent – reimbursed under a dependent care FSA is not allowed even if you claim your child as a dependent on the tax return.
Prior reimbursements will be treated as your taxable income.
You may request to stop reimbursements based on your change in legal marital status.
Unfortunately - the FSA accumulated balance will be forfeited.
There is nothing we may legally do... At least that amount was not included into taxable wages - so we may not talk about possible deductions.