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I'm not paying for child care but my company gave me money for it and I did not know this. It is listed on my W2 in box 10. What do I do?

 
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4 Replies

I'm not paying for child care but my company gave me money for it and I did not know this. It is listed on my W2 in box 10. What do I do?

You have to enter the W-2 as it appears.   If you did not use that money to pay for childcare while you worked and do not enter anything for the childcare credit into the software, then the money in box 10 just becomes more taxable income.

 

Going forward, if you are not using any sort of childcare provider and do not need to have pre-tax money put into box 10, discuss that with your employer.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
ColeenD3
Expert Alumni

I'm not paying for child care but my company gave me money for it and I did not know this. It is listed on my W2 in box 10. What do I do?

Please see this answer from MaryM428.

 

 Flexible spending accounts (FSAs) put aside pretax dollars for certain expenses—in this case qualified child-care and elder-care costs. These accounts are use-it-or-lose-it, so unless you find expenses to claim, you'll forfeit the balance to your employer.

While unused amounts cannot be refunded, the existing regulations do permit Dependent Care FSAs to offer a grace period. A grace period allows participants to spend unused funds during the 2.5 month (75 day) period following the end of the plan year.

Many employers suspended day care FSA amounts when day care facilities closed last year. 

I'm not paying for child care but my company gave me money for it and I did not know this. It is listed on my W2 in box 10. What do I do?

So then my next question is that if I put my mom down as the provider and her social, will that mess up her taxes? She is only on SSI and if she has to claim this, does she have to provide receipts and/or paystubs?

LenaH
Employee Tax Expert

I'm not paying for child care but my company gave me money for it and I did not know this. It is listed on my W2 in box 10. What do I do?

Did you pay your mom for childcare? If you put her name, social security number and amount of child care paid to her, then she will have to report this income on her tax return. She does not have to provide you with receipts and/or paystubs. 

 

Qualifying expenses for the Child and Dependent Care Credit include:

  • Childcare provided by a babysitter or licensed dependent care center.
  • The cost of a cook, housekeeper, maid or cleaning person who provides care for the child or dependent.
  • Day camp or summer camp fees, even for camps centered around a sport or activity, qualify if the camp was selected to provide care while the parent or parents were at work. However, overnight camps do not qualify.
  • Costs related to before- and after-school care for children under 13.
  • Costs related to a nurse, home care provider, or other care provider for a disabled dependent.

For more information, please see What is the Child and Dependent Care Credit?

 

@julesmader2012

 

 

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