What Is IRS Form W-10 for Dependent Care?

IRS Form W-10, officially titled “Dependent Care Provider’s Identification and Certification,” is a document used to collect information from a childcare provider. It serves as a formal request from a parent or guardian to the individual or organization that cares for their dependent. The form’s primary function is to ensure that the person paying for care has the necessary details of the provider to accurately report dependent care expenses. This document is not filed with the Internal Revenue Service (IRS) but is instead kept by the parent for their personal records.

Purpose of Form W-10

The main reason for Form W-10 is to enable parents to claim the Child and Dependent Care Credit on their federal income tax returns. To qualify for this credit, taxpayers must report specific information about their care provider to the IRS. The information gathered on the form is transferred to Part I of Form 2441, Child and Dependent Care Expenses, which is the official document filed with a taxpayer’s Form 1040 or 1040-SR.

The process involves the parent who pays for the care and the care provider who furnishes their details. The provider is required by law to supply a valid Taxpayer Identification Number (TIN) to the requesting parent. This exchange of information is a prerequisite for the parent to properly complete Form 2441 and substantiate their claim for the credit.

This requirement also applies to individuals who receive dependent care benefits through an employer’s plan. Even if not claiming the tax credit directly, these benefits must be correctly reported, which again necessitates having the provider’s information for tax compliance.

Information Required from the Care Provider

When a care provider receives a request to complete Form W-10, they must furnish specific details in Part I of the document. The required information includes the provider’s full name, complete address, and their Taxpayer Identification Number (TIN). The provider must fill out their section accurately and then sign and date the certification.

The TIN can be one of two types. For an individual provider, such as a nanny or an in-home daycare operator operating as a sole proprietor, the TIN is their Social Security Number (SSN). For a business entity, such as a daycare center or a registered company, the TIN is an Employer Identification Number (EIN). The provider must enter the correct number and, if it is an SSN, check the corresponding box on the form.

After completing their portion, the provider returns the form to the parent who requested it. The provider’s only responsibility is to accurately complete Part I and return it to the client.

The Parent’s Role and Due Diligence

A parent’s primary responsibility is to formally request that the provider complete and sign a Form W-10. This should be done for each person or organization that provided care for their dependent during the tax year. The parent then uses the information from the completed W-10—the provider’s name, address, and TIN—to accurately fill out Part I of Form 2441.

A parent must exercise “due diligence” if a care provider refuses to supply the required information, particularly their TIN. The IRS requires the parent to demonstrate a serious effort to obtain this information to still potentially claim the credit. Keeping a copy of a properly completed Form W-10 is the primary way to show due diligence.

If the provider refuses to complete the form, the parent must document their attempts to get the information. Due diligence can also be demonstrated by keeping records like a recently printed letterhead or invoice from the provider that includes their name, address, and TIN. If such documentation is unavailable and the provider remains uncooperative, the parent should still complete Form 2441 with all the information they have and attach a statement to their tax return explaining that they attempted to secure the provider’s TIN but were refused.