You must complete Part III of Form 2441 (PDF), Child and Dependent Care Expenses, (or Form 1040A, Schedule 2 (PDF), Child and Dependent Care Expenses for Form 1040A Filers) to claim the exclusion of the benefits from income even if you cannot claim the credit. Enter your total employer-provided dependent care benefits on the correct line (this amount should appear in box 10 of your Form W-2) and your qualified expenses on the correct line. The last lines of Part III will determine whether you can also take the credit and what your dollar limit is on qualified expenses. Also complete Part I, Persons or Organizations Who Provided the Care.

References:

• Form 2441 (PDF), Child and Dependent Care Expenses
• Form 2441 Instructions, Child and Dependent Care Expenses
• Publication 503, Child and Dependent Care Expenses
• Tax Topic 602, Child and Dependent Care Credit

Source: www.irs.gov