Dependent Care Benefits- box 10 W-2… What?
Asked by: pmitchem
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
- dependent care benefits on w2
- irs w2 box 10