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Level 2
June 6, 2019
Solved

Why is my box 10 dependent care benefit being added to my total income? This is money I contribute out of my paycheck.

  • June 6, 2019
  • 3 replies
  • 21 views
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Best answer by ChristinaS

Box 10 is added to your income until you complete the Dependent Care Credit (Form 2441) questions.

Federal Taxes- Deductions and Credits- You and Your Family- Child and Dependent Care Credit

The deferral in Box 10 is never pretax without the satisfactory completion of Form 2441 on a tax return. Only your tax return can fully validate your ability to make tax-deferred contributions to a Dependent Care spending account. If you qualify, the Box 10 will be removed from your income once you've entered the childcare expenses.


3 replies

Level 10
June 6, 2019

Box 10 is added to your income until you complete the Dependent Care Credit (Form 2441) questions.

Federal Taxes- Deductions and Credits- You and Your Family- Child and Dependent Care Credit

The deferral in Box 10 is never pretax without the satisfactory completion of Form 2441 on a tax return. Only your tax return can fully validate your ability to make tax-deferred contributions to a Dependent Care spending account. If you qualify, the Box 10 will be removed from your income once you've entered the childcare expenses.


Hal_Al
Level 15
Level 15
June 6, 2019
If you don't qualify for the dependent care credit (for example your spouse does not have earned income or was not a full time student), the box 10 amount will end up being taxable.