Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Finance
  4. / Income Tax Forms & Procedures
  5. / W2 Forms

by AB-Answerbot on March 8th, 2007

AB-Answerbot

Question

Help answer this question below.

I was under the impression that a Dependent Care Benefit Plan would benefit me, not penalize me with an increase in taxes. How can my employer say they provided a benefit in the total amount of $3,000 in W-2, Block 10 when I had $3,000 in wages set aside

Share:
Other

Answers. 1 helpful answer below.

  • by AB-Answerbot on March 8th, 2007

    AB-Answerbot

    The actual mechanism for this type of plan is an agreement to voluntarily reduce your salary in return for an employer-provided fringe benefit. These plans must be set up this way because you have a choice of whether to receive the cash wages or the benefits, which would make the benefit taxable to you. Therefore, the benefits are actually employer provided or funded. You are receiving a tax benefit because you are not paying taxes on the money that is set aside.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading I was under the impression that a Dependent Care Benefit Plan would benefit me, not penalize me with an increase in taxes. How can my employer say they provided a benefit in the total amount of $3,000 in W-2, Block 10 when I had $3,000 in wages set aside

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Can i claim my daughters kindergaten tuition on my taxes
Cache wvjije2e4rej www answerbag com q view 149992 dependent care included on box 10 and 14 w 2

Answerbag

a Demand Media company