My understanding is that if you contribute to a dependent care FSA (is that the same as DCAP?) it will appear in Box 10 of your W2. The rules state that a married filing separate spouse can only contribute $2500. She did, and it appeared in Box 10. However, as MFS and the couple lived together, she cannot file Form 2441 to take the child care credit. Therefore, the amount in Box 10 becomes taxable income. Am I missing something? So what is the benefit at all, and why do they allow MFS spouses to contribute when they cannot benefit? Unless I'm missing something. Thanks in advance.