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Level 4
April 28, 2021
Solved

Are W-2 line 10 dependent care benefit taxable if MFJ and only 1 spouse has earned income?

  • April 28, 2021
  • 1 reply
  • 5 views

Are dependent care benefit amount reported on W-2 line10 fully taxable if only one spouse worked in 2020 and another spouse with ITIN is not allowed to earn income?
The couple spent on child care over $10K vs DCB $3,461. Thank you

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Best answer by TaxGuyBill

Yes, unless the non-earning spouse is a full-time student or disabled to the point of not being able to care for themselves, both spouses must have earned income.

1 reply

Level 15
April 28, 2021

Yes, unless the non-earning spouse is a full-time student or disabled to the point of not being able to care for themselves, both spouses must have earned income.