Sorry that money is only “tax free” if you use it for childcare expenses and file under the rules that allow you to claim it as such. It is taxable income and must be entered on your tax return. Your W-2 entries must match what the IRS received from the employer.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
