Form 2441, Part III

Both my wife and I contributed to dependent care accounts in 2025. I contributed $5,000 and my wife contributed $2,000. As a result, my W-2 form, box 10 reports $5,000 and my wife's W-2 box 10 reports $2,000. Our total 2025 dependent care expenses are $8,500.

It appears Form 2441, Part III, line 19 picks up incorrect earned income from my wife's W-2. As a result, the $2,000 is treated as taxable benefit and is reported on Form 1040, page 1, line 1e.

Any idea why?

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