maglib
Level 10

Retirement tax questions

@alicetax128  Box 10 of your W-2 shows the total amount of dependent care benefits that your employer paid to you or incurred on your behalf. Amounts over $10,500 ($5,250 in the case of a separate return filed by a married individual) are also included in box 1.

You must complete Part III of Form 2441, Child and Dependent Care Expenses to figure the amount, if any, that you can exclude from your income.  

 

So if you did not utilize them then you answer no and then you may be eligible to use an FSA if your employer provides that for child benefits which is up to he limits for total expenses reported are $3,000 for one dependent and $6,000 for two or more dependents.  


You may be eligible for the child and dependent care credit on your tax return.  For 2021 only, the total expenses that you may use to calculate the credit may not be more than $8,000 (for one qualifying individual) or $16,000 (for two or more qualifying individuals). Expenses paid for the care of a qualifying individual are eligible expenses if the primary reason for paying the expense is to assure the individual's well-being and protection. If you received dependent care benefits that you exclude or deduct from your income, you must subtract the amount of those benefits from the dollar limit that applies to you (that is why when you answer yes/no above your refund will change).  

 

Hope this was helpful.

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