We are an unmarried couple with a young toddler living in an extended household - filing separate tax returns. The child can qualify as a dependent for either of us since we both live with him throughout the year.
It would be better for the other parent to claim the child since I make too much money to benefit from the child credit and she would get the child credit. However, I' already signed up and used the DCFSA throughout the past year.
I see documents that state that a custodial parent may still use a Dependent Care FSA without claiming the child on their taxes if they are divorced and living separately and the other parent claims the child on their taxes.
However, does this apply for unmarried parents living together?
I see in the publication 501 that "The exclusion from income for dependent care benefits" have to be bundled with everything else to one parent. Is "The exclusion from income for dependent care benefits" referring to DCFSA?
If I can't do the DCFSA without claiming the child, how would I unwind/undo the DCFSA now at the end of the year at tax time?