Taxibility of Dependent Care Benefits

[gordywest]

I have a client that the IRS sent a notice (CP2000) and they are trying to include the $5000 in box 10 of the W2 as income received for Dependent Care Benefits. However, I did not see anywhere where this would be the case...the ATX software does not calculate it as income either...dependent care expenses for the year were $6980 so they didn't get the $600 credit either.

Am I missing something? Let me know where I can find this info if I have done this incorrectly!

Gordy from Albuquerque

[George Boutwell]

Form 2441

Did you file Form 2441 (pages 1 and 2) with the return?

[S T]

Yes you have to file

Should be simple matter, responding to the CP 2000 notice, attach the form 2441 form with the appropriate information.

The tax return needed to have a form 2441, page 2 completed stating the information for childcare expenses to offset box 10 of the W-2.

Sandy

[gordywest]

This is a return I am fixing

The client only sent in page 1 of the 2441...and took the credit...AND didn't bother to put the amount from box 10 into his TurboTax program...due to this change, I will be sending in the with the notice:

-corrected form 2441
-1040X (because he left off some medical expenses)
-corrected return
-explanation cover page

anything else you can think of?

Gordy from Albuquerque

[jainen]

anything else

>>anything else you can think of?<<

I don't know the expression for the opposite of something else -- something less? Anyway, use the explanation section of Form 1040X instead of the cover letter.