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My dependent care provider doesn claim the income as earnings. Can I use the dependent care account?

April 26, 2017account claim dependent Earnings income Provider

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My dependent care provider doesn claim the income as earnings. Can I use the dependent care account?

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You can, but you will need to report the Social Security or tax identification number of your provider, along with the amount paid and benefits received, on form 2441 to accompany your federal income tax return. As a result, your provider will have to pay taxes on that income.