What Is the W-10 Tax Form Used For?

Form W-10, Dependent Care Provider’s Identification and Certification, is the document a parent or guardian uses to collect information from the person or business they pay for child or dependent care services. Obtaining these details is a necessary step for any taxpayer who intends to claim tax benefits related to these expenses. The form ensures the parent has the correct information from their provider when it comes time to prepare their own income tax return.

Information Required on Form W-10

Part I of the form is designated for the provider to complete, requiring their full name, complete address, and their Taxpayer Identification Number (TIN). The provider must also sign and date a certification statement, attesting under penalties of perjury that the information provided is correct.

A TIN is a number used by the Internal Revenue Service (IRS) for tracking purposes. For an individual provider, such as a nanny or a home-based daycare operator, the TIN is their Social Security Number (SSN). For a registered business, like a daycare center, the TIN is an Employer Identification Number (EIN). The form includes a checkbox for the provider to indicate if the TIN supplied is an SSN or an EIN. The parent or guardian requesting the information fills out their own name and address in Part II of the form.

Responsibilities of Payers and Providers

The person paying for care is responsible for requesting that their provider completes Form W-10 or furnishes the required information through another acceptable method. The IRS requires the payer to exercise “due diligence” in obtaining this information. If a provider is reluctant or refuses to supply their details, the payer must be able to demonstrate they made a good-faith effort to get them.

Proof of due diligence can include keeping a copy of the Form W-10 that was sent to the provider for completion, even if it was not returned. Other documents that can serve as proof include a recently printed invoice or letterhead from the provider that contains their name, address, and TIN. For household employees, a completed Form W-4 can also serve this purpose. Without the provider’s information, the tax credit for care expenses could be disallowed.

Care providers have a legal obligation to provide their TIN to the person requesting it. This requirement exists even if the provider does not earn enough income to be required to file their own tax return. A provider who does not furnish their correct TIN when requested may be subject to a penalty for each failure, unless they can show that the failure was due to a reasonable cause and not willful neglect.

Using the Information for Tax Filing

Once the payer has the completed Form W-10, they use it to complete their own tax forms. The information from the W-10—the provider’s name, address, and TIN—is transferred directly to Part I of Form 2441, Child and Dependent Care Expenses. This form is then filed with the taxpayer’s annual Form 1040 tax return.

The Form W-10 itself is not filed with the tax return. The payer must keep the signed W-10 for their records. It serves as the taxpayer’s proof that they collected the provider’s information as required and substantiates the details reported on Form 2441. Should the IRS question the validity of the expenses claimed, the completed W-10 provides the necessary documentation.