Form 2441

[Gene V]

This is something new I learn today, must of you probably already know this.

From the instruction Form 2441 page 3

To qualify for the credit, you must have 1 or more
qualifying persons. You should show the expenses for
each child in column (c) of line 2. However, it is possible
a qualifying child could have no expenses and a second
child could have expenses exceeding $3,000. You should
list -0- for the one child and the actual amount for the
second child. The $6,000 limit would still be used to
compute your credit unless you have already excluded or
deducted, in Part III, certain dependent care benefits paid
to you (or on your behalf) by your employer.

[Possi]

Shut the Front Door!

I didn't know THAT!

[Koss]

Wow

Also did not know that...

On page 11-7, The Tax Book says

The $6000 limit does not need to be divided equally among persons receiving care. For example, if expenses are $4000 for one child and $2000 for a second child, the taxpayer can use $6000 to figure the credit.

And this is consistent with what Gene found in the IRS instructions. The part that TTB does not explicitly address is that apparently there is no minimum dollar amount needed for each qualifying child.

BMK

[Koss]

Way to weed 'em out...

Memo to the IRS:

Put this on the RTRP exam!



BMK

[S T]

I did not know

Me neither, I thought each child was limited to $3,000,
Total paid $ 5,500 ----so if I had one child at $ 4,000 - limited to $ 3,000, and the other child had only $ 1,500 that is all that was entered
$ 3,000 + $ 1,500

{quote]TIP
If you paid qualified expenses for the care of two
or more qualifying persons, the $6,000 limit does
not need to be divided equally. For example, if
you paid and incurred $2,500 of qualified expenses for
the care of one qualifying person and $3,500 for the care
of another qualifying person, you can use the total,
$6,000, to figure the credit.[/quote]

Thanks Gene, for this tidbit of information Do you know if this rule applied prior to 2010??

Sandy

[Gene V]

Sandy,

The 2009 instruction does not have the zero expense for one child and actual expense for
the other child. However, it does have the $6,000 divided uneven between the two children.

[BP.]

However, it is possible
a qualifying child could have no expenses and a second
child could have expenses exceeding $3,000.[/b] You should
list -0- for the one child and the actual amount for the
second child. [b]The $6,000 limit would still be used to
compute your credit

Thank you, Gene V!! Great find! Have used the $6K for 2 or more kids for years, but did not know about this bit above. Really changes things!

I could have a 10 y.o. with no child care & a two y.o. with $12,000 in child care, and use $6K for the one kid. This is new!