Matt's employer provides $4,000 of assistance for childcare for all employees under its dependent care assistance program.Matt uses this assistance for his daycare for his baby.Matt can exclude the value of this benefit.

Question

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According to IRS regulations, employer-provided dependent care assistance up to $5,000 can be excluded from an employee's income for tax purposes. As Matt's employer provides $4,000 of assistance for childcare, he can exclude the value of this benefit.

Matt's Employer Provides $4,000 of Assistance for Childcare for All