@brian193 wrote:
Yeah, that is the question. The W2s dont need to be corrected, they are correct. Turbo tax should have a way to understand affiliate businesses. I received the reimbursement, so they have to show it. I wish they would have just excluded from box 1. but if they did, they are breaking IRS rules, as $5000 has already been excluded, and they cannot legally exclude more just because turbo tax doesnt understand
You're going to have to find a smarter accountant than me. If you work for two legally separate businesses and get 2 W-2s, then you should not have the same DCB listed twice.
I think your BOA W-2 is wrong. If the $5000 is added to your box 1 wages, it should not be listed in box 10. Or, if they list the DCB in box 10, they should not also add it to box 1.
There is no procedure in the forms or instructions for the dependent care benefit that will allow you to correct this situation with your existing W-2s. If you file as-is, you might be able to alter your entries to pay the correct tax (I can suggest 2 ways), but the IRS will come after you for the discrepancy. You would then have to explain to them what the problem was and how you fixed it, and hope you can convince them.
It would be much better to get a corrected W-2.
