Taxpayer receives dependent care benefits (box 10) - but he does not claim the dependent but does pay the daycare. my question is will they have to be included in their income? or is there a way around it.
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Originally posted by Twin Turbo Z View PostNo its not taxable if they pay daycare expenses. One does not have to claim a child to claim daycare expenses. Should be a code on the dependent entry screen to not claim the child as a dependent, but claim the expenses.
I partially disagree. Aren't the rules the same as the Dependent Care Credit? If so, unless the exemption has been given to the other parent by means of Form 8332, the parent DOES need to claim the child.
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Originally posted by TaxGuyBill View Post
I partially disagree. Aren't the rules the same as the Dependent Care Credit? If so, unless the exemption has been given to the other parent by means of Form 8332, the parent DOES need to claim the child.
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Originally posted by Twin Turbo Z View Post
True that. Many other stipulations apply too. I think the original post is talking about employer provided benefits. Maybe I am mistaken.
Any more thoughts??
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Originally posted by JT2307 View Post
Yes I was talking about the employer benefits. He has money in box 10 but he doesn't claim the child but pays for the child care. Not looking for the credit just don't want the money to be part of his income.
Good news is the taxpayer didn't pay any FICA/Medicare payroll taxes on the $5K (assuming he took the maximum).
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