My child care provider doesn report income to the IRS. Does that affect my ability to use a dependent care spending account?
You won’t be able to get your money out of your dependent care spending account without the provider’s Social Security number. You must list the provider’s name, address, and tax I.D. number on your claim form if you want to be reimbursed. You should get the number from your provider before signing up for the plan. The provider is required by law to give it to you. (The only exception is if it’s a non-profit organization under Internal Revenue Code Section 501(c)(3) such as a day care center operated by a non-profit religious or educational organization.) To get the tax benefit, you must provide the identification information. This is true for the tax credit as well as for the dependent care spending account.
Related Questions
- My child care provider doesn report income to the IRS. Does that affect my ability to use a dependent care spending account?
- When a spouse doesn report income to the IRS, is the innocent spouse liable for the taxes?
- Can I use the Dependent Care FSA if my provider doesn’t report the income to the IRS?
