Common questions for Form 2441 in ProConnect Tax

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How does ProConnect Tax calculate line 3?

If your client received any dependent care benefits, ProConnect Tax will complete Part III of Form 2441 to determine how much of the care expenses were already covered by deductible or excluded benefits, and can't be used to calculate the credit.

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Dependent care benefits from partnership or sole proprietorship are not flowing to the 2441

Dependent care benefits you enter on Schedule K-1, Schedule C, or Schedule F must also be entered on Input Return ⮕ Credits ⮕ Dependent Care Credit (2441), under the General Information section in the top right corner, 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.

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Claiming the Dependent Care Credit in a married filing separate return with dependent care expenses:

When a taxpayer is filing MFS and has dependent care expenses, there are certain requirements that must be met to be able to take the credit. The  taxpayer would be "treated as unmarried."

To exclude the dependent care benefits from the return:

1. Go to Input Return ⮕ Credits ⮕ Dependent Care Credit (2441)
2. Click on the General Information button in the top right.
3. Enter 1 in, 1 = married filing separate and treated as unmarried

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Dependent Care Benefits for Form 2441 Part III Line 14

This section will help you to determine where to enter dependent care benefits for Form 2441, part III, line 12. Benefits may be entered in a few different places, depending on how you received them.

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For benefits reported on a W-2:

1. Go to Input Return ⮕ Income ⮕ Wages, Salaries, Tips (W-2).
2. Scroll down to the Wages section.
3. Enter the amount in (10) Dependent care benefits.

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For benefits reported on a partnership K-1:

1. Go to Input Return ⮕ Income ⮕ Partnership Info (1065 K-1)
2. On the left-side menu, select Line 13 - Other Deductions.
3. From the K-1 Code list, select O=Dependent care benefits.
4. Enter the amount.

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Form 2441 is not generating:

See IRS Pub. 503 for more information.

• The taxpayer or spouse has no earned income
• The dependent information is incomplete

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The taxpayer or spouse has no earned income

To claim this credit, the taxpayer (and spouse, if married) must both have taxable earned income. An exception applies for full-time students and disabled persons. Earned income for Form 2441 includes:

• Wages reported on a W-2, box 1
• Schedule C income
• Schedule F income
• Net earnings from self-employment (from a partnership or s corp K-1)
• Disability pensions

Earned income is also reduced by any loss from self-employment.

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The dependent information is incomplete

You must enter the qualifying person's (or dependent's) information to generate the credit. A qualifying person is generally a child under age 13 who the taxpayer can claim as a dependent, a disabled spouse, or disabled person who the taxpayer can claim as a dependent. To verify the dependent information:

1. Go to Input Return ⮕ Credits ⮕ Dependent Care Credit (2441).
2. Choose Children, Dependents.
3. Make sure the necessary fields are completed:
   • First name
   • Last name
   • Date of birth
   • Social security number
   • Qualified dependent care expense incurred and paid in 2024 (MANDATORY)

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