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Common questions for Form 2441 Child and Dependent Care Expenses in Lacerte

If you are married and filing a joint return, your work-related expenses on your joint return are limited to the lesser of your or your spouse’s earned income. See Q17 for special rules that may apply if you are a student or unable to care for yourself. For example, a married couple supporting two qualifying persons who paid $6,000 in qualified expenses may qualify for up to $2,100 in credits, depending on their AGI. Get unlimited live help from tax experts plus a final review with TurboTax Live Assisted Basic. Generally, married persons must file a joint return to claim the credit. If your filing status is married filing separately and all of the following apply, you are considered unmarried for purposes of claiming the credit on Form 2441.

I’m trying to fill in my kids’ 2021 summer camp cost, but somehow, Turbo tax did not give me opportunity to go through it. When I check none of “full time students” or “disabled”, the system then leads me out of this item. All features, services, support, prices, offers, terms and conditions are subject to change without notice. TurboTax Premium searches 500 tax deductions to get you every dollar you deserve. Your taxes done 100% right, guaranteed.

To claim the credit, you will need to complete Form 2441, Child and Dependent Care Expenses, and include the form when you file your Federal income tax return. In completing the form to claim the credit, you will need to provide a valid taxpayer identification number (TIN) for each qualifying person. Generally, this is the social security number for the qualifying person. For tax year 2023 and 2024, the maximum amount that can be contributed to a dependent care flexible spending account and the amount of tax-free employer-provided dependent care benefits is $5,000 ($2,500 if married filing separately). To count as a work-related expense, the care must be for your dependent under the age of 13 or any other qualifying person who regularly spends at least 8 hours each day in your home.

  1. We’ll search over 500 deductions and credits so you don’t miss a thing.
  2. This will trigger the carryover question.
  3. They must be willing to do this voluntarily since it isn’t a requirement.
  4. You can use Form W-10, Dependent Care Provider’s Identification and Certification, to request this information.
  5. See IRS Publication 503, Child and Dependent Care Expenses for more information.

It may be worthwhile to consider other options in addition to the child and dependent tax credit. For example, employer-sponsored dependent care flexible spending accounts allow you to divert pre-tax money from your salary to an account for qualified care expenses. For the 2023 tax year, you can contribute up to $5,000. For the 2021 tax year only, the Child and Dependent Care Credit expanded in several ways under the American Rescue Plan. For the 2021 tax year, the credit was refundable if you lived in the U.S. for more than half the year. Your spouse who is out of work during the year must be actively looking for employment, and the work-related expenses must be incurred so that you and your spouse can work or look for work as discussed in Q18.

(If you don’t enter your own correct info, you might not be covered by the accuracy guarantee.)   I haven’t gotten any response from TT either. If you switched from TT desktop to TT online, and upgraded to the full Live Online experience, your assigned expert can take over and file for your professionally if they can’t succeed in helping you file with personal Turbotax. That’s expensive, but it might be less expensive than visiting a tax pro in your area. Otherwise, you might try a different provider, or file by mail. As you prepare Form 2441, you’ll notice it includes a line to report your earned income. The IRS defines “earned income” as the money you receive from employment and self-employment activities.

What is the Child and Dependent Care Credit?

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Self-employed caregivers

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Deducting Summer Camps and Daycare with the Child and Dependent Care Credit

If you are temporarily away from your main home because of illness, education, business, vacation, or military service, you are generally treated as living in your main home. You must identify all persons or organizations that provided care for your child, dependent, or spouse. To identify the care provider, you must give the provider’s name, address, and taxpayer identification number (TIN). You can use Form W-10, Dependent Care Provider’s Identification and Certification, to request this information. If the care provider information you give is incorrect or incomplete, your credit may not be allowed.

Expenses to attend kindergarten or a higher-grade level are not expenses for care, and therefore are not work-related expenses. I tried Step by step walk through the questions, after I checked the first 3 questions, and then the system had me back to the main menu. I got nowhere to fill in the summer camps info. I can report this, but it likely won’t be fixed by April 18. I agree it is a problem; entering the carryover on line 13 should cause the rest of part 3 to calculate automatically, and it does not. Yup, I already tried to override the amounts in Forms mode.

However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. For guidance on showing due diligence, see IRS Publication 503, Child and Dependent Care Expenses. The CARES Act required household employers to provide sick and family leave to household employees in the event of illness. If household employers had to cover these family and sick leave pay costs, they can take a dollar for dollar tax credit and reduce the amount of money paid when sending the IRS employment taxes for the household employee. For 2021, the American Rescue Plan brings significant changes to the amount and way that the Child and Dependent Care Credit can be claimed. The plan increases the amount of expense eligible for the credit, relaxes the credit reduction due to income levels, and also makes it fully refundable.

Child and Dependent Care Credit for 2023 and 2024

The credit percentage is completely phased out to zero for families with AGIs of $438,000 or more. If you meet all the requirements to be treated as unmarried and meet items 2 through 5 listed earlier, you can take the credit or the exclusion. If you do not meet all the requirements to be treated as unmarried, you cannot take the credit.

We’ve prefilled your info so you can quickly calculate your next tax return based on your life changes.. However, the credit must be claimed from your local territory tax agency and not from the IRS. Furthermore, special rules apply to these five U.S. territories. Please contact your local territory tax agency for information about availability and your eligibility for the credit in 2021. With this user-friendly tax software, registered NerdWallet members pay one fee, regardless of your tax situation. Plus, you’ll get free support from tax experts.

Dependent care benefits you enter on Schedule K-1, Schedule C, or Schedule F must also be entered on Screen 33, Dependent Care Credit (2441), under the General Information section, in the field labeled Sole proprietorship or partnership. This allows the program to calculate the amount of benefits that are deductible or taxable for purposes of the credit. Once the credit is calculated, you may need to adjust your inputs on Schedule K-1, C, or F to report only the amount of benefits that were deductible. You must pay the work-related expenses incurred in 2021 by December 31, 2021, and meet the special residency requirements for the credit to be refundable for 2021.

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