Question

Employer Contributes $1,200 to DCFSA but I don’t contribute anything

Forum|Forum|5 years ago
December 4, 2020
1 reply
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If my employer contributes $1,200 and I don’t contribute at all, what happens during tax season? If I spend the $1,200 from my employer, do I need to report how I spent the $1,200 to all the people that watched my two kids?

B

Bsch4477

Employee

Since the child care amount was pretax you are not eligible for child care credit unless you paid more than that amount. See additional edited reply for reporting.

D

dash8484Author

Thank you! So I’m taking that as I don’t need to report it then? Will my employer include that on a W2?

B

Bsch4477

Employee

That amount will be in box 10of your W-2. You will be prompted to complete form 2441 to report that the amount was spent on child care and to determine if you are eligible for child care credit if you spent more than that. You would report the name and tax ID of the child care provider as well as their address.