I have a client who is divorced and is not the custodial parent. The have pretax dollars deducted from their paycheck for child care expenses that show in box 10 of the w2. If I interpret the instructions correctly, they are not eligible for the credit because they do not have a qualifying dependent (being the non custodial parent). In part III of form 2441, the amount shown in box 10 is entered. Since they do not have a qualifying dependent, do I enter 0 on line 18 or the amount they paid in expenses? My client has been making payments to pay child care expenses all year. I have the statements from the providers. Are the pretax dollars taxable to my client if they do not have a qualifying dependent? It looks to me that it should, but things are not always as they appear. Thanks for any help.
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Never mind
Please disreguard. I got it. -
Let us know
Please let us know how you completed F2441. I have more and more divorced clients, so it's bound to come up one day. Thanks.Comment
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My situtation
Was made easier after talking with my client again. My client had the kids for more time in 07 which makes my client the custodial parent. From what I researched (instructions, publications and someone who administers FSA), if they were not the custodial parent, they should not be participating in an FSA. The non custodial parent would not have a qualifying child. Hence, they would not have any qualifying expenses. It looks like the amount in box 10 of the w2 would then go to line 30 (After all the calculations) then to line 8 on the 1040 with DCB noted on that line. I hope this helps. I am not 100% sure that is right (if they are non custodial) but it is the best I can come up with. Issues relating to divorces are getting more complicated everyday. I hope this helps Lion.Comment
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Thank you
Thanks. I'll store it in the back of my mind, and hope I can pull it out far enough to come back here to search when the occasion arises. More divorces and more complexity.Comment
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