Did Company XXXX provide on-site child care? We're asking because we need a little more info about the benefits reported in box 10 of your W-2.

[alicetax128]

I received $5,000 for box 10 on my W-2. The company does provide child care but I didn't use them I used any another school for after card. If I answer Yes to this question it gives me more refund and if I answer No the refund is left the same.  Seem odds as I used another on-site child at another location. I need help with this question do i answer YES or NO

[xmasbaby0]

Is your question really  "Should I lie and say I used the on-site child care?  in order to get a bigger refund?"

If  you did not use the employer's on site child care say no.    You  will enter the Social Security number or Tax ID of the childcare provider you paid to watch your child while you worked.

[maglib]

@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.

[Opus 17 · Accepted solution]

If you did not use the company provider then answer no.

Then, go the the Child and Dependent Care Credit section of the deductions and credits page and run that interview.  You will be asked to enter information about your qualifying dependent and the day care provider.  That should allow you to subtract the FSA benefit from your gross income, and you may qualify for an additional tax credit as well, since the credit limits were substantially raised for 2021.   

[alicetax128]

Thx for your help.

[AmyC]

The program is asking yes or no to determine your if you paid for child care and where. If you answer yes, it knows you were paying onsite and the amount. If you answer no, then you have to go over to the Deductions and Credits section and enter the child care information. This will take your refund back up. The program needs to know who you paid and how much.