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    nydalal's Avatar
    nydalal Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Nov 14, 2007, 12:13 PM
    Eligibility on FSA enrollment and tax credit
    I am working for a company and having H1-B visa. My wife and son are on dependent visa (H-4). Because of dependent visa, my wife is not eligible to work. My son will start going to preschool from Dec’07.

    My questions are:

    1. Am I eligible for FSA enrollment? As my wife can not work ( because of dependent visa).
    2. If I won't enroll for FSA, then will I get tax exemption on the fees I am paying for my son (in Jan'09 tax return)?

    Thanks in advance,

    Ni
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 16, 2007, 03:15 PM
    1) You should be eligible for the Flexible Spending Account for medical expenses not covered by insurance. You MAY be eligible for the daycare portion if your wife is either disabled and unable to care your son OR if your wife is attending college or some other type of eligible schooling.

    2) I assume you mean the Child Care Credit. You are eligible only if your wife is disabled to going to school (just like above).
    nydalal's Avatar
    nydalal Posts: 9, Reputation: 1
    New Member
    		  
    #3

    Nov 16, 2007, 03:26 PM
    That means I can neither suscribe for FSA nor get tax-credit. Correct? But don't you think that because of dependent visa, I should get either of these benefits.

    And also what are the alternatives for such situation?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Nov 16, 2007, 04:04 PM
    If you are under the H-1B visa, you are effectively treated the same as a U.S. citizen. So your visa status is NOT the issue.

    For ANYONE to claim either the dependent care portion of the FSA, or to claim the Child Tax Credit, the wife must either:

    - Work (which is not possible in your case)
    - Be disabled.
    - Attend school.
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