Dependent care credit being denied on New York returns for qualifying children turning 14 when expenses where paid while they were 13 and acceptable for Federal purposes?

[sarr80]

Appears that when expenses paid while child was 13 even though he/she turns 14 during the year, the child care credit is being denied on New York return unless disabled box is checked.  Federal law allows those expenses to be eligible for the dependent care credit as long as they were paid while the child was 13.  New York law follows federal law for qualifying child yet the program does not allow the credit on the NY return.

[itonewbie · Accepted solution]

The age limit is under 13.  That's why the credit was disallowed.

[Just-Lisa-Now-]

Does federal flag for age, or is that up to the preparer to notice and disallow the care credit?

[itonewbie]

The program uses the input for DOB to first determine whether the dependent is 13 or above at the beginning of the year.  It then depends on the preparer to enter the qualified expenses, based on the preparer's judgement of what is eligible - in other words, so long as the child is below 13 at the beginning of the year, whatever the preparer enter as qualified expenses would be used to compute the credit.

[Skylane]

PS allows you to enter dependent care for 13+ aged kids because there's an exception for special needs kids. If you run the diagnostics you'll get a (yellow) cautionary statement (that no one ever bothers to read).... just cause PS lets you give the credit doesn't mean the kid is eligible. I think the NY software says no based on age.... there may or may not be an box to check for special needs... I don't remember.

[itonewbie]

@Skylane - What me worry?

[Just-Lisa-Now-]

:+1: