Hi Teresa, I want to ask a question from your answer below. My employer provides on-site day care, and the amount of box 10 of W-2 considered as discount/scholarship. When I receive the end of year statement from day care, do I need to deduct the amount on box 10?
For example, my day care statement for 2021 is $10,000. The amount on box 10 (W-2) is $5,000. Under Child and Dependent Care Credit, I can split $2,500 for each kid. Is this correct?
"If the employer had on-site day care, they might incur child care costs on your behalf and the amount in box 10 would show those costs deducted out of your paycheck, which would still be part of your wages, but not included in your check and broken out so there was not federal tax withheld."
