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Employee
July 18, 2019
Question

IRS Still Listing Dependent Care Benefits as income

  • July 18, 2019
  • 1 reply
  • 0 views

I posted 2 months about IRS coming after me for my 2017 taxes because I didn't handle the Dependent Day Care FSA correctly. I had forgotten to enter Box 10. So once I did, I lost the childcare credit and owed IRS another $1000. I am not certain if I sent the IRS the new Form 2441.

 

However, IRS has come back and still claiming I have Dependent care benefits that I didn't report, that should be as income. They are saying I reported $98 and my employer reported $5000. 

 

1) Where are on my tax return are they finding this $98 that I reported in dependent care benefits?

 

2) More importantly, why are they still considering this as income? It was Dependent Day Care FSA.  Could it be if I didn't send the revised Form 2441 that includes Part III? If I remove all the daycare expenses in TurboTax, the new number is about what IRS is saying I owe, so not submitting the revised Form 2441 may be what caused this.

 

Here is the previous thread I posted on: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/i-see-the-mistake-forgot-to-enter-box-on-my-w-2-so-now/01/762306#M100744

 

 

1 reply

Rainman12
Employee
July 19, 2019

"I am not certain if I sent the IRS the new Form 2441" -> You Can be certain things aren't going to get better until you confirm Provider information/amount paid with IRS.

1) Nobody in this public forum has access to your return, thus can't say what the $98 represents. 

2) The $5k reported in Box 10 of your W-2 is Income (with penalties) Unless offset with an equal or greater amount properly reported to a provider via Form 2441. 

Employee
July 21, 2019
I faxed in a revised 2441.

Any idea what line in the tax return they may have attributed the $98 child care benefit? I have searched my return for a 97 or 98 that could represent a childcare benefit but can't find anything. I also have search for words related to it and looked at those lines, but can't figure it out.