Dependent care withholding in Excess of $5,000

[bzorc]

Because there were 27 bi-weekly pay periods for a client of mine in 1999, a person who wanted $5,000 withheld for dependent care expenses has a W-2 that shows $5,192 withheld?

What is the procedure for refunding and reporting the excess withholding? Any answers would be appreciated.

Thanks!

[Guest jreddi]

If the person hasn't spent the money, it could be refunded and taxed as regular in come. If it is past the plan year end and they are forfeiting the money, then the overage would be added to the taxable income for that year on the W-2 and taxed as regular income.