What are amounts withheld from wages for dependent care and medical spending accounts?
Some people participate in an employer-sponsored benefit that allows them to pay for dependent care and medical expenses on a pre-tax basis. If you participate in such a plan, your employer withholds a certain portion of your earnings to pay for these expenses. In return, your income is reduced by the amount withheld and therefore your taxes are also reduced. The employer reports the amount withheld for these purposes on your W-2 form. Since no taxes are paid on this income, it is considered untaxed income and needs to be reported in question E9f.
