My wife got $1032 towards dependent care benefits from her employer. This amount is listed in her W2 under box 10. My wife and I do a joint tax return. When I added her W2 in turbo-tax, this amount comes as taxable income. We haven't received any Dependent Care FSA in 2017 from both of our employers. Her employer paid this amount ($1032) to a third-party back-up care service provider (Bright Horizons) towards the care of our son. In addition to what employer paid, my wife had to pay $6/hr as a contribution to avail the back-up care. She availed the services for 70 hours and paid $420. My question is can we claim tax exemption for both the amounts? (the amount employer paid - $1032 & the amount she paid - $420). If yes, how to do so in Turbo-tax?
