On Nov 3, 10:20*pm, Mark Bole <ma...[at]pacbell.net> wrote:
- quote -

correct?

Amount paid (net) is in Box 10. If less than this amount is used for
dep. care, then
"DCB" appears on Line 7 of the 1040, showing the additional income.

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Paul Thomas, CPA wrote:
- quote -


- quote -


I was looking at it from the *employee* point of view. Line 16 of Form
2441 asks for the forfeited amount, and the form instructions give an
example where gross amount is reported in box 10, then employee states
amount forfeited on Form 2441, line 16, where it is subtracted from the
gross. Someone else is telling me that only the net amount (what was
actually reimbursed) should be reported in Box 10 of W-2, which means
the employee would never use Line 16 of Form 2441. I'm just trying to
find out which is "right" (or at least, which is more common).

-Mark Bole

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"Mark Bole" <makbo[at]pacbell.net> wrote
- quote -






I don't see this as a tax issue, but one of employer honesty. What is the
"value of all dependent care assistance" paid for, and report that amount.
That the employer happened to have received a few bucks more than their
costs shouldn't impact the reporting on the W-2.





--
Paul A. Thomas, CPA
Watkinsville, Georgia

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A friendly contention has arisen with a colleague -- namely, does the
amount reported by the employer for dependent care benefits under a
Section 125 (cafeteria) plan, in Box 10 of the Form W-2, include
forfeited amounts (gross) or only amounts actually reimbursed (net)?

From IRS Pub 15-B, and other IRS pubs, seem to skirt the issue:

"Form W-2. Report the value of all dependent care assistance you
provide to an employee under a dependent care assistance program in box
10 of the employee's Form W-2. Include any amounts you cannot exclude
from the employee's wages in boxes 1, 3, and 5."


-Mark Bole

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >