Dependent Care Box 10

[aesmith4]

When I take out my dependent Care Benefits, ($5,000 W-2, Box 10) my owed tax amount goes down. Why are my taxes increasing with the credit being input?

[KrisD15]

I assume you had Dependent Care Expenses. 

If you received Employer Assistance (W-2 Box 10) that assistance would limit or eliminate the credit. So when you "take out" that 5,000, the program will assume you paid expenses "out-of-pocket" and the program would apply those expenses towards a credit (owed tax amount goes down).

When Box 10 shows 5,000, the program will lower your expenses by 5,000 (because those funds in Box 10 were not taxed, therefor can't be used for also a credit) resulting in your tax liability to increase.