I looked over my clients tax return and due to his box 10 amt on his W-2 and his AGI, he does not qualify for credit but I wanted to make sure that I am correct that he also gets NO deduction, correct?
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If box 10 is what I think it is, you need to enter W2 information exactly as is into your software which will then alert you to filling out the form 2441.Originally posted by AZ-Tax View PostChEAr$,
Harlan Lunsford, EA n LA -
Box 10 on W-2 is "dependent care benefits"
and after completing W-2 and completing form 2441 that generated, there is still a $0 on ln 48 form 1040. Just wanted to confirm that if TP does not qualify for credit, there is no potential "tax deductible" default some place on form 1040 that I missed.Comment
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Just report it as it is
If you leave out 2441, the box 10 ends up on line 7 with DCB. So, even though you don't see a benefit on 1040, you still enter box 10 and fill out 2441 to exclude those benefits from income. The benefit is in the excluding from income. Now, if she had qualified expenses more than her box 10, she could still have a credit on 1040.Comment
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Lion, I dont that is the case with an AGI of $240K
Box 10 of W-2 is $5K and TP had $9500 of exps but the AGI must have disqualified them completely for nothing is on ln 48.Comment
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2 or more kids
She'd have no additional credit with one child; with two or more children, she'd have credit on the extra $1,000 allowed at the minimum rate of 20% with no upper limit on AGI.Comment
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