"Isn’t it required to report provider SSN/TIN for child care expenses if pre-tax dollars were used from dependent care FSA?"
Yes, although I imagine the reason is more so that the IRS can track reported income by the provider.
"but the end of year balance was $420 which is on box 10 of my W2. "
Really? The amount in box 10 should have been the entire amount paid or incurred by the employer - "Show the total dependent care benefits under a dependent care assistance program (section 129) paid or incurred by you for your employee. Include the fair market value (FMV) of care in a daycare facility provided or sponsored by you for your employee and amounts paid or incurred for dependent care assistance in a section 125 (cafeteria) plan. Report all amounts paid or incurred (regardless of any employee forfeitures), including those in excess of the $5,000 exclusion." See box 10 on page 18 in the W-2 Instructions.
"So I’m getting $780 care credit even though I’ll get reimbursed full amount "
I don't see how you are getting a $780 care credit - maybe a $780 deduction, but not a credit.
If I got your story correct, your employer should have put in the total amount that you had applied to the dependent care FSA in box 10 for tax year 2020, then in the screens after you entered the W-2, you would then enter the amount carried over to next year ($420?). Is this what happened?
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