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Dependent Care Benefits

By William Perez, About.com

Definition: If your employer pays for daycare expenses, the amount of daycare benefits provided will be reported on your W-2 Statement, box 10 as "dependent care benefits." These amounts include the costs:
  • paid by the employer directly to a daycare provider
  • paid by the employer for an a daycare facility on campus
  • paid by the employer through a dependent care flexible spending account.
If you have an amount in box 10 of your W-2, then you must fill out Form 2441 (PDF) (if you are filing Form 1040) or Schedule 2 (PDF) (if you are filing Form 1040A). These forms will report your childcare expenses for the year.

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