Child & Dependent Care 2441 not populating data

Forum|Forum|1 year ago
November 29, 2024
2 replies
12 views

2023 amending return

Clients have AGI of $198,000. Two children under age 13 where one had daycare expense of $2,100. Parents collected $4,200 in childcare benefits (Box 10 on W-2).

Form 2441 Part II is not calculating lines 3-11 to determine limitations of credit.

Part III reflects their taxable benefits $2,100 ($4200 - $2100). Benefits rec'd less the childcare expenses.

Lines 27- 31 are not populating either.

Nothing is feeding to Sch 3 to give them any credit; I figure $2100*.2 = $420 should appear.

They do receive credit on 8812 for $4000.

working mostly with retirees, I don't work with these forms all too often & not sure what I'm missing.

This topic has been closed for replies.

Best answer by TaxGuyBill

@Tributos wrote:

I saw other instructions that took avail credits $6000 for both kids less $4200 in FSA benefits = $1716 and multiplied by the rate .2 (for their AGI) for a credit of $343.

That would have been true if they spent $6000 or more.

The 'available credits' is the LOWER of (a) $6000 or (b) the amount they actually paid (see line 3 of Form 2441; but then earned income could also lower that on line 6).

T

TaxGuyBill

Level 15

@Tributos wrote:

daycare expense of $2,100. Parents collected $4,200 in childcare benefits (Box 10 on W-2).

Part III reflects their taxable benefits $2,100 ($4200 - $2100).

Nothing is feeding to Sch 3 to give them any credit; I figure $2100*.2 = $420 should appear.

There shouldn't be a credit. The $2100 of expenses were used up by the Dependent FSA on Box 10 of the W-2. There aren't any additional expenses to be used for the credit.

T

TributosAuthor

Level 3

that makes more sense - I saw other instructions that took avail credits $6000 for both kids less $4200 in FSA benefits = $1716 and multiplied by the rate .2 (for their AGI) for a credit of $343.

Thank you---

T

TaxGuyBillAnswer

Level 15

@Tributos wrote:

I saw other instructions that took avail credits $6000 for both kids less $4200 in FSA benefits = $1716 and multiplied by the rate .2 (for their AGI) for a credit of $343.

That would have been true if they spent $6000 or more.

The 'available credits' is the LOWER of (a) $6000 or (b) the amount they actually paid (see line 3 of Form 2441; but then earned income could also lower that on line 6).

T

TributosAuthor

Level 3

Appreciate the clarification 🙂

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