Nanny Tax / Daycare Provider

REFUNDMN · ‎02-28-2022

This is my first time doing a client that hired a nanny in 2021. My question is can the client still write off daycare expenses using form 2441 with the nanny’s information. Thanks

sjrcpa · ‎02-28-2022

Yes they can get the dependent care credit for wages paid to the nanny.

Of course they filed a W-2 and are completing Schedule H, right?

The more I know the more I don’t know.

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REFUNDMN · ‎02-28-2022

Yes and thank you.

sjrcpa · ‎02-28-2022

You're welcome.

The more I know the more I don’t know.

Karl · ‎04-03-2022

I have this situation this year too. Do you double-enter the care: once on Sch H and again for Form 2441? I know this is a ProSeries post, but I'm on Lacerte. Lacerte doesn't seem to be picking up the Sch H entries as eligible for 2441.

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taxiowa · ‎04-04-2022

Reason Sch. H is not picking up 2441 eligible expenses is because Lacerte or any other software does not know what you are filing Schedule H for. It could be your gardener or your wife's pool boy that you are paying as a household employee. So enter it yourself on 2441.

dkh · ‎04-04-2022

lol.........your wife's pool boy ............lol good one!

TaxLi82 · ‎01-20-2023

Hi,

I see I’m not getting credit for reporting day care expense to tax payer . Want to confirm it is because she worked as a self employed w/1099K and no w2 . Is this the reason ?

sjrcpa · ‎01-20-2023

Self employment income counts as earned income for the dependent care credit. Does she have a profit or a loss?

The more I know the more I don’t know.

TaxLi82 · ‎01-20-2023

Loss

IRonMaN · ‎01-20-2023

And that is the real reason.

Slava Ukraini!