I work full-time. My employer provides access to a dependent care FSA. My wife goes to school full time and as a result we have dependent care expenses for two eligible dependents. She also works part time and we have additional dependent care expenses as a result.
The 2017 limit for married filing joint dependent care FSA is $5000.
My earned income will be larger than $5000. If my wife's earned income is less than $5000, does that limit how much we can contribute toward the dependent care FSA?
IRS Publication 503 indicates:
- For a full-time student you can claim $250 earned income each month of being a full-time student.
- Your earned income limit for a month is the greater of $250 or your actual earned income.
If my wife earns more than $250 in a month can I use that as her earned income for that month instead of $250?