Re: Dependent Care Benefits - what are they ?

From: ravi_sekhar@mentorg.com
Subject: Re: Dependent Care Benefits - what are they ?
Date: Mon, 20 Jul 1998 05:27:44 -0700

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I have the following situation:

My employer provides on-campus childcare facilities. My child is enrolled
in the childcare facility.  I contribute to a Dependent Care Spending
Account ( DCSA ).  In addition, depending on the employees salary level, my 
employer also provides a subsidy of upto 15% of the childcare expenses in a 
given year.

For the year 1996, I did contribute to the DCSA account. However, I
did not avail of the subsidy. As such, I did not file Form 2441 for Dependent
Care Benefits for 1996. However my W-2 for the year shows an amount of $4000 
under Box 10 of the W2.

My Question:

Is the amount in box 10, the amount I contributed to the DCSA account? My
current understanding is if I receive any subsidy from my employer, then that
amount will be reported under Box 10 of the W-2.

Since the amount in the DCSA account is being contributed entirely by
me, only that the money is pre-tax, I DONOT think that the DCSA amount should 
go into box 10 of the W2 form.

Please help me understand the finer points of what the difference between
Dependent Care Spending Account ( DCSA) and Dependent Care Benefits ( DCB) is!!!

Thanks a lot in advance.

Ravi


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