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Level 5
December 7, 2019
Solved

Childcare credit when one child has $0 qualified expense

  • December 7, 2019
  • 2 replies
  • 20 views

client has 2 young children.  One has qualified expenses of $9,000.  the other one has $0.  How many qualified person can we count?  $3000 x1 or $3000 x 2?

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Best answer by rbynaker

$6,000.

Top of page 4:

https://www.irs.gov/pub/irs-pdf/i2441.pdf

"To qualify for the credit, you must have one or more qualifying persons. You should show the expenses for each child in column (c) of line 2. However, it is possible a qualifying child could have no expenses and a second child could have expenses exceeding $3,000. You should list -0- for the one child and the actual amount for the second child. The $6,000 limit would still be used to compute your credit unless you have already excluded or deducted, in Part III, certain dependent care benefits paid to you (or on your behalf) by your employer."

2 replies

rbynaker
rbynakerAnswer
Level 13
December 7, 2019

$6,000.

Top of page 4:

https://www.irs.gov/pub/irs-pdf/i2441.pdf

"To qualify for the credit, you must have one or more qualifying persons. You should show the expenses for each child in column (c) of line 2. However, it is possible a qualifying child could have no expenses and a second child could have expenses exceeding $3,000. You should list -0- for the one child and the actual amount for the second child. The $6,000 limit would still be used to compute your credit unless you have already excluded or deducted, in Part III, certain dependent care benefits paid to you (or on your behalf) by your employer."

hgtcAuthor
Level 5
December 7, 2019
thank you.