What Is the W10 Tax Form for Dependent Care?
Understand the role of Form W-10 in gathering your dependent care provider's details, a key step for claiming the Child and Dependent Care Credit.
Form W-10, officially titled the “Dependent Care Provider’s Identification and Certification,” is a document used to gather essential information from a childcare provider. This form is not filed with the Internal Revenue Service (IRS) but is a record-keeping tool. Its primary function is to collect the provider’s data, which is necessary for a taxpayer to claim the Child and Dependent Care Credit on their federal income tax return. The details from a completed W-10 are used to fill out Form 2441, “Child and Dependent Care Expenses,” which is submitted with the tax return.
Required Care Provider Information
The care provider must furnish specific details for Part I of Form W-10, including their full legal name and complete mailing address. A central piece of information required is the provider’s Taxpayer Identification Number (TIN). The type of TIN depends on the provider’s business structure; for an individual, such as a nanny or in-home caregiver, this will be their Social Security Number (SSN).
For a business entity, like a daycare center or after-school program, the required TIN is an Employer Identification Number (EIN). The provider must indicate on the form if the TIN provided is an SSN. In specific cases, such as a provider that is a tax-exempt organization under section 501(c)(3), they may not have to provide a TIN and can instead write “tax-exempt” in the designated space.
Completing and Handling the Form
Once the provider has entered their identification details in Part I, their next step is to certify the information. This is done by signing and dating the form, which affirms that the name, address, and TIN are correct. The provider then gives the completed and signed form back to the person who requested it, the parent or guardian paying for the care.
The payer then completes Part II with their own name and address. It is important to understand that the completed Form W-10 is not sent to the IRS. Instead, the payer must keep the form for their personal records as substantiation for their tax credit claim. If a provider refuses to complete the form, the payer must demonstrate “due diligence” in their attempt to obtain the information to still potentially claim the credit.