Should Line 10, Dependent Care Benefits, of my Form W-2 be included
when calculating my income?
A portion of the amount in Box 10 of the Form W-2 (PDF) may
be includable in your income. Please refer to the Form 2441 Instructions, Child and Dependent Care Expenses, 1040A filers refer
to Form 1040A, Schedule 2 (PDF), Child and
Dependent Care Expenses for 1040A Filers to determine how much, if any,
of the dependent care benefits may be excluded. If you meet the requirements
described in Form 2441 (PDF), Child and Dependent
Care Expenses, you may be able to exclude all or part of dependent care
benefits provided under a qualified employer plan. However, this amount is
reduced or eliminated if your earned income (or your spouse's earned income)
is less than the annual exclusion amount, or if your child is not under age
13. Any benefits that exceed the exclusion limit are also includable in your
income, and your employer should have included these amounts in Boxes 1, 3,
and 5 of your Form W-2 (PDF) in addition to reporting
these amounts in Box 10. The amount you can exclude is figured and claimed
by completing Part III of Form 2441 (PDF) or Schedule
2 of Form 1040A (PDF).
When an employer provides day care assistance, should the employer's
contribution be reported in box 10 of Form W-2?
Yes. An employer reports dependent care assistance payments in box 10 on
Form W-2.
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