My employer withholds $5000 from my pay which I can then use to pay dependent care expenses. They reported it on my W2 as $5000 in Dependent Care Benefits, so it's being subtracted from my $6000 expense eligible for deduction. So if I had paid taxes on the $5000 instead of putting it in dependent care account, I could have deducted the full $6000? How can that be right?
