Tax on free daycare

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cooper5b
cooper5b Member Newcomer

I work for a daycare center, and do not pay tuition for my child since I work there. Do I need to include that as income on my income tax return anywhere?

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  • AZBeachey
    AZBeachey Member Newcomer
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    If it is taxable your employer should include it on your W-2. This is just my interpretation but up to $5000 should be tax-free as a dependent care reimbursement though this would stop up from claiming the tax credit on Form 2441 if you have other childcare expenses. If the tuition is more than $5000 they should include the excess on your W-2 as income. If they will I guess you will find out.