Child Care Tax Credits on IRS Form 2441
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- Опубліковано 13 січ 2022
- If you pay for child care for your kids, you may be eligible for a tax credit for a portion of the amounts paid to the child care provider. The credit is calculated on IRS Form 2441.
You need to collect a valid tax ID from the child care provider:
• IRS Form W-10 or Form ...
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#IRS #Form2441 #ChildCareTaxCredit #TaxCredits
Thanks for the video, if I have sponsored DC FSA, can I still have this credit? My TurboTax doesn't show I am eligible over 8000 per child, while I have some left over after the 10500 FSA limit, do you know if this is a bug and how to fix it?
Thank you for this vide, it has been very helpful. Just one thing, if my spouse do not work (do not have an income), WHat should I put in line 5? Thank you!
Hi Jason, can 2441 credit and 8812 credit be claimed at the same year?
Hey Jason.. Thanks for the video. I used only $100 as Dependent Care FSA from my employer as I was not aware of the limit (my bad). Can I still claim the remaining $2900 amount using form 2441 ?
Hi Jason. Thank you for this video. I have a question that I have been trying to find the answer to. My daughter (single mom) paid me last year to babysit her daughter (my granddaughter) at our home while she interviewed, worked and did training for work. My granddaughter just turned four. My daughter is claiming the child care tax credit. I know that I will need to claim that as income on my tax return in order for her to claim the credit. 1. I am already self employed (sole proprietor) so do I just add that to my Schedule C? 2. I am not considered a household employee correct? I just claim the income as regular self employment income so it's taxed the appropriate Social Security and Medicare taxes and she can claim the credit? Thank You. Kristi
You can report the income on your Form 1040, but it would likely go on a separate Schedule C. An individual taxpayer can have multiple Schedule C's if they are different trades or businesses. If the babysitting activities are different from your other self-employed job, you would use a separate Schedule C.
Hi Jason how do you do year two of 8915e if you did it for 2020 income taxes? If there a certain process?
The IRS is developing a form for this issue. If you deferred a portion of the income inclusion to 2021, it's going to be reported on IRS Form 8915-F which is still in draft mode.
Hello, great information. I have a question? How do I fill out forms on turbo tax?
Turbotax will still use the same version of the Form 2441, they will just have a different interface to enter the information.
It won’t be available until feb 10 according to TT
Great video, I’m still searching for an answer of how or why the credit is calculated different because my wife was unemployed collecting UC but did go back to school and actively looked for work also. I received partial not a full credit and our earnings were not above 125k
It is difficult to answer this in the abstract, as I would need to see your full tax profile to give you an answer. Generally, we see the credit phased out for taxpayers that have income above the relevant thresholds, or they had a portion of their child care covered by the employer which wasn't included in income, which means those dollar amounts are not eligible for a credit.
Hi,
This video was very hopeful. Question: How do I get the daycares EIN? Thanks
Thank you for watching! You can ask the provider directly for their legal entity name, EIN and address. It is customary for them to provide these details. You can also ask them to complete an IRS Form W-10.
@@JasonDKnott thank you so much for the prompt response.
@@JasonDKnott hi, the daycare has not provided the EIN as of yet. Is there another way to retrieve legally? Thanks
Hey Jason this is great information, do we disregard part 3 of the 2441?
Part 3 is completed if your employer provided you dependent care benefits during the year. If you paid for your child care out of pocket and did not have anything covered by your employer, then you can leave Part 3 blank.
@@JasonDKnott What if the W2 line 10 Depended Care Benefits amount was simply wages that were untaxed? Is that the same as a benefit paid by the employer?
My Turbo tax 2441 for won’t let me move forward because it says add correct zip code ?… I have added it & still won’t move forward 😞
Check the software as it might require the extended ZIP+4 code
So if I put $5k into an FSA and had daycare expenses of 5,520 I can only use the 520 amount in box 1e? And I use this amount against the % credit?
That is correct. If you have a dependent care FSA, any expenses paid for using the funds from the HSA, cannot be double counted as a child tax credit on Form 2441.
@@JasonDKnott in a normal year (thinking of next year) as I continue the $5k FSA, I won’t be able to deduct any expenses right? Assuming the tax law goes back to the way it was before. I’m expecting my daycare expense to double for 2022.
My daycare provider refuse to give me her social.. how would I fill that form out.
Technically, you do need a valid tax ID of the daycare provider (either an SSN, ITIN, or EIN) in order to claim the credit, otherwise the IRS may disallow the credit. You can still claim the credit if you can demonstrate a good faith effort to obtain the information, such as asking the provider to complete a Form W-10 with all of their information. If the provider provides only name and address, you can enter "See Attached Statement" in the SSN field and attach a statement to your return explaining why the provider did not give you all the information requested.
If you pay a family member to watch your kids in order to work. Can you claim it? If you can, what would you need in order to claim it? Just their SSN and receipts? Another question for the sitter. If that is the only income they make throughout the year can they file taxes using babysitting as their income? Would they have to, If I claim child care credit? What would they need to do?
Would it be worth it for her if she has a dependent? I am not sure if I should count it as a loss if it will not benefit her as well.
Do you have a video on this topic?
Yes, if you pay a family member to watch your children, you may be able to claim the wages as a tax credit. In order to claim the credit, you should obtain an IRS Form W-10, which has the care providers name, address, and SSN. They will need to report the wages as income on their tax returns.
Would I need to send it in or is it for her?
On line 9b how is that calculated and explanation needed to complete
Line 9b is completed if you had expenses in 2020 that weren't actually paid until 2021. For example, a December invoice for child care that isn't paid until January of the next year.
Hi I put in my 3 children and put the total 16,000 but and the end of the form there telling me I'm eligible for 2300 is this wrong?
How much money did you make last year???
40,000
@@maricelarios261 well i really cant see the problem because u made enough. How much are u getting back all together on your refund???0
Generally, the credit is phased out if your total income is above certain thresholds, or you had a portion of the child care covered by your employer and you didn't include those employer provided amounts in income. You are supposed to reduce the credit by any amounts paid for by an employer that was not included in your W2 income.
What about number 5 you skipped that
In this example, line 5 is the same as line 4, because the taxpayer is a single filer and is not married. If you are preparing a married filing joint return, then Line 5 should report the spouses earned income.
@@JasonDKnott it also states about the spouse/yourself being a student or disabled how do you figure that amount if say the parent was a part-time student. I checked the instructions and it is not as clear as i was hoping
Kudos on being a lawyer and a CPA