Day care paid for or provided by an employer to an employee, the value of which does not exceed the employee's or employee's spouse's "earned" income, and does not exceed the amount of $5,000, is not included in the income of the employee and is deductible by the employer.
Origin: IRC § 129
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2018
FY2019
FY2020
FY2021
FY2022
Personal Income Tax
Exclusions from Gross Income
1.011
Exemption for Dependent Care Expenses
Day care paid for or provided by an employer to an employee, the value of which does not exceed the employee's or employee's spouse's "earned" income, and does not exceed the amount of $5,000, is not included in the income of the employee and is deductible by the employer.
<a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000129----000-.html" target="_blank">IRC § 129</a>
13.5
14.5
14.6
14.5
14.5
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