Dependent Care Refund - How to show on W2
Last year we failed our Dependent Care testing and so I was instructed to show the reimbursements received by the employees as taxable income on the W2. One employee's CPA however, is saying that the pre-tax deduction should also be removed from the W2. I am very confused. It seems to me that the pre-tax deduction should show on the W2 and the reimbursements show as taxable. Can anyone help me? I am getting bombarded from all corners.