Hi, Cynthia thank you for answer my questions. I have few follow up questions here. Why do you think $6k reimbursement from this third party provider is after tax? Does after tax mean I don’t report this $6k income since this is tax free benefits? My total child care expense was actually more than $11k in year 2020. I received reimbursement from my employer dependent care FSA account for regular child care expense since I contributed this $5k through my regular pay check, than I got another $6k from this third party provider. My employer website said “ back up care services may be taxable to me and included as imputed income in my wages if the fair market value of backup care service I received in a calendar year, combined with my dependent care FSA election exceeds $5,000.” When I combined $5k reimbursement from my FSA and $6k reimbursement from back up care third party provider, than the total amount I got was $11k, which is more than $5k. Does that mean I have to report this $6k as other income and pay taxes on it? Why shouldn’t I say “yes” when TurboTax ask me if this is Other Wage Received? I though this $6k would be wage income. My w2 did show $5k from FSA under box 10, but my w2 didn’t include any of $6k money I received from this third party provider.
