Nobody Puts Baby In the Corner . . . And the IRS Agrees, Providing Guidance on the Taxability of Dependent Care Assistance Programs
By EsqSocial Corporation 11/05/21
Yesterday the IRS released Notice 2021-26, which clarifies that if eligible dependent care benefits would have been excluded from income if used during either the prior tax year (2020 or 2021), these benefits remain excludable from gross income and are not taxable wages to the employee for the tax years ending in 2021 or 2022. The Notice also clarifies that these benefits will not be taken into account for purposes of the application of the limits under section 129 to other dependent care...
By: Holland & Hart - The Benefits Dial