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March 10, 2023
Question

Dependent FSA if one spouse is a pastor and does not have direct income

  • March 10, 2023
  • 1 reply
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Hello, I'm eligible through my work for a dependent care FSA. I didn't realize my spouse has to have "earned income" in order for me to NOT have to pay taxes on the FSA contribution after the fact. My spouse is a pastor and works but does not have direct earned income (he may get direct donations from parishoners here and there but would total only ~$2000 max in a year). So I'm assuming now the dependent care FSA is totally not worth it for me? Appreciate any insight.

    1 reply

    chengpa1Author
    March 10, 2023

    A related question - for the child and dependent care tax credit, I am now getting the following message: "Because you entered $6,000 or less of earned income for XXX, we need to know if either you were a full-time student..."  I don't think there's a $6,000 requirement for earned income for this credit? Is this a mistake?

    March 11, 2023

    not the earned income credit but the dependent care credit because there is an exception for both taxpayers not having earned income if one is a student. as for the $6K look at line 3 of the 2441 form. that's the limit for 2022. the rules change substantially for 2022