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Dependent Care Benefits- box 10 W-2… What?

Asked by: pmitchem 455 views YA Discussion

OK, I will try to explain this. Please dumb answers WAY down for me!

Someone working at a daycare with 2 children attending the daycare, with about $ 17,600 in annual income has 22,060 reported as earnings on their W-2. There is also $ 10,890.50 entered in box 10 of the W-2. This was not signed up for and 10K was not taken from their check. They had $ 3,600 for chilld care “withheld” from thier check. As near as I can tell the taxman took the 10.8K and subtracted the 3.6K and taxed the remaining 6+K from box 10. The full 22K reported as earnings was taxed as well. (even though the annual income was 17.6K)

I do not know a thing about taxes. Please help! Is this right? And if not who is wrong?

How others found here:

  • Box 10 Dependent Care Benefits
  • box 10 w2
  • irs box 10

1 Answers



  1. Quick Answers on Oct 24, 2012 Reply

    There’s no guarantee the W-2 was done correctly.

    Ask your client how much the daycare charged for each child. Children of different ages often do cost different amounts.

    It *sounds* like your client paid for one spot and barted for the other. Since barter income *is* income, it had to be accounted for.

    It would help if you gave the values for box 1 thrugh box 14.

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