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Taxpayer has 2 qualified children but only paid childcare for one of them. How do I get one child's name off of Form 2441, Part II?

sharon-benson
Level 1

The child with no childcare expense is 12.  Program is allowing a $1200 credit when it should only by $600

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TaxGuyBill
Level 15

No, the program is correct at allowing a $1200 credit.


From the 2441 Instructions:

If you paid qualified expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. This limit doesn't need to be divided equally. For example, if you paid and incurred $2,500 of qualified expenses for the care of one qualifying person and $3,500 for the care of another qualifying person, you can use the total, $6,000, to figure the credit.

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.

https://www.irs.gov/instructions/i2441#idm140680692399504



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3 Comments 3
taxiowa
Level 9
Level 9
It is working as required.  $1,200 credit is allowed in your case
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TaxGuyBill
Level 15

No, the program is correct at allowing a $1200 credit.


From the 2441 Instructions:

If you paid qualified expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. This limit doesn't need to be divided equally. For example, if you paid and incurred $2,500 of qualified expenses for the care of one qualifying person and $3,500 for the care of another qualifying person, you can use the total, $6,000, to figure the credit.

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.

https://www.irs.gov/instructions/i2441#idm140680692399504



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abctax55
Level 15

The software is doing it correctly, tho it seems illogical.  The instructions do explain it; Lacerte provides us with a nice diagnostic explaining it (I haven't had this scenario in six/seven years). 

HumanKind... Be Both
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