Common questions for Form 2441 Child and Dependent Care Expenses in Lacerte (2024)

This credit only applies when both the taxpayer (and spouse, if Married Filing Jointly), have taxable earned income. Earned income for Form 2441 includes:

• Schedule C income
• Schedule F income
• Partnership K-1 net earnings from self-employment
• S-Corporate K-1 net earnings from self-employment
• Disability Pensions

If the taxpayer or their spouse were disabled or a full-time student:

1. Go toScreen 33, Dependent Care Credit (2441).
2. Enter the Number of months disabled or full-time student.
   • An entry in this field will trigger Lacerte's calculation of the allowance provided for spouse's who are disabled or full-time students.
   • See How to resolve diagnostic ref. 717 in Lacerte - Earned income requirement not met for dependent care credit more information.

If the Taxpayer/Spouse has a W-2, box 10with an amount greater than the $3,000. You can verify thecalculation on 2441 page 2 Part III. If the Taxpayer/Spouse has a tax liability and the W-2, box 10 is less than $3,000:

1. Go toScreen 2, Dependent Information.
2. Verify there is a qualifying dependent entered:
   • Dependent has a validSSN
   • Dependent has aDate of Birth(a qualifying child must be under age 13.)
3. Go toScreen 33, Child and Dependent Care Expenses.
4. SelectPersons & Expenses Qualifying for Dependent Care Cr.from the left hand navigation panel.
5. Verify the DependentsName,Date of birth, andSocial security numbermatch theDependent from Screen 2.
6. Enter theQualified dependent care expenseincurred and paid in 20XX(MANDATORY).
7. Click onPersons or Organization Providing Dependent Carefrom the top left navigation panel (Screen 33.2).
8. Verify thePerson or Organizationinformation is entered and complete.
9. Enter theTotal amount paid to care provider in 20XX for all dependents.

Dependent Care Benefits reported onthe W-2, box 10 should be enteredinScreen 10,Wages, in the field,(10) Dependent care benefits(code 12).To enter Dependent Care Benefits not reported on W-2:

1. Go toScreen 33, Dependent Care Credit (2441).
2. SelectGeneral Informationin theDependentbox on the left side of the screen.
3. Enter the appropriate amount in the appropriate field underDependent Care Benefits.
4. Enter other applicable information as needed.

The total amount of dependent care benefits will show on page 2 of the Form 2441, Part III, Line 12. Part III ofForm 2441 is used for computing the taxable benefits.The taxable amount of benefits will show on Form 2441, Line 26and will also show in the space to the left of Line 7 of the 1040 with the initials "DCB".

Dependent Care Benefits (DCB) from a sole proprietorship or partnership should also be entered in the input screens for each respective business.For example,DCB from a Partnership K-1, box 13would be entered in both Screen 33, Dependent Care Credit and Screen 20.1, Passthrough K-1's.

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 toScreen 33, Dependent Care Credit (2441)
2. Click onPersons & Expenses Qualifying for Dependent Care Cr.from the left navigation panel
3. Click on theGeneral Informationbutton
4. Enter1in,1 = married filing separate and treated as unmarried

See the Form 2441 instructions for more information:

"Married Persons Filing Separately

Generally, married persons must file a joint return to claim the credit. If your filing status is married filing separately and all of the following apply, you are considered unmarried for purposes of claiming the credit on Form 2441.

• You lived apart from your spouse during the last 6 months of [current tax year].
• Your home was the qualifying person's main home for more than half of [current tax year].
• You paid more than half of the cost of keeping up that home for [current tax year].

If you meet all the requirements to be treated as unmarried and meet items 2 through 5 listed earlier, you can take the credit or the exclusion. If you do not meet all the requirements to be treated as unmarried, you cannot take the credit. However, you can take the exclusion if you meet items 2 through 5."