W-10's and FSA

[kitykids3]

I don't have any kids personally to claim on my taxes so I don't know how it works, but every one of my families use a FSA account for childcare. Do I still give them a w-10 for the year even though they have FSA? Or will this somehow put me at risk for helping them 'cheat' on their taxes?? I am completely in the dark, but the thought popped in my head so I figured I'd ask just to be safe. I do both anyways.

[TomCopeland]

Fsa

I don't have any kids personally to claim on my taxes so I don't know how it works, but every one of my families use a FSA account for childcare. Do I still give them a w-10 for the year even though they have FSA? Or will this somehow put me at risk for helping them 'cheat' on their taxes?? I am completely in the dark, but the thought popped in my head so I figured I'd ask just to be safe. I do both anyways.

Parents can set aside up to $5,000 per family, per year in a Flexible Spending Account through their employer. The can spend up to $3,000 for one child to claim the child care tax credit. They can't use the same money for both. Go ahead a give these parents a W-10 representing how much they paid you for the year. Get them to sign a copy for your records. That will protect you if the parent tries to cheat.

[kitykids3]

Parents can set aside up to $5,000 per family, per year in a Flexible Spending Account through their employer. The can spend up to $3,000 for one child to claim the child care tax credit. They can't use the same money for both. Go ahead a give these parents a W-10 representing how much they paid you for the year. Get them to sign a copy for your records. That will protect you if the parent tries to cheat.

So have them sign the w-10 that they understand that's the total amount they paid to me? Then make a copy and I keep the copy and give them original. Should I put some kind of disclaimer as to why they are signing it? "I understand the total given above is the total paid for the year to childcare provider and that it has not been adjusted in any way to take out monies used for FSA, etc." Good wording? Please let me know if that works. Thank you Mr. Copeland!

[Thriftylady]

So have them sign the w-10 that they understand that's the total amount they paid to me? Then make a copy and I keep the copy and give them original. Should I put some kind of disclaimer as to why they are signing it? "I understand the total given above is the total paid for the year to childcare provider and that it has not been adjusted in any way to take out monies used for FSA, etc." Good wording? Please let me know if that works. Thank you Mr. Copeland!

You can put the amount on the w10 and have both of you sign it. Or you can just do a year end receipt showing what they paid for the year, your EIN on it and have them sign. As far as the FSA you don't have to put anything on it about that. There is a completely different line on the taxes for that info, and will be calculated when all the info is put on the correct tax line. You do not have to do anything besides give them the yearly total they paid you.

[TomCopeland]

W-10

So have them sign the w-10 that they understand that's the total amount they paid to me? Then make a copy and I keep the copy and give them original. Should I put some kind of disclaimer as to why they are signing it? "I understand the total given above is the total paid for the year to childcare provider and that it has not been adjusted in any way to take out monies used for FSA, etc." Good wording? Please let me know if that works. Thank you Mr. Copeland!

You don't need to add any disclaimer or any statement. Get them to sign a copy and keep one for your files.

[kitykids3]

Thank you Tom!