Please follow the instructions below to successfully add child and dependent care expenses in the Tax Software.
1. Navigate to the dependent section on the Client Data Screen. Check the Dep Care box (as seen below) to add Form 2441. This will also transfer the dependent information to that form.
Note: children must be 13 years of age or younger or permanently disable in order to claim this credit.
2. Click on FRM 2441- Child Care Credit. Enter the care provider's information in Part I of the form.
Note: You DO NOT need to enter the provider info TWICE. The additional boxes are for multiple providers, or if children went to different providers.
(a) Care provider's name and phone #
(b) Care provider's address, city, state, and zip code
(c) Care provider's identifying number (Also referred to as FEIN or EIN). If the care provider is an individual, enter their SSN in this box.
(d) Total amount paid to the care provider
3. Enter the amount paid to the provider for each child in Part II box (c)
4. If there is more than two dependents, you can click the worksheet button below to enter the expenses paid for dependent.
5. It will then open the worksheet that you see below. Here you will enter the expenses for each dependent. If the amount is not provided for each dependent, just divide the total amount evenly between the dependents.
6. You can find the amount of the dependent care credit on line 11 of Form 2441
7. It is important to remember that the child and dependent care credit is a NON-REFUNDABLE credit. If the taxpayer has NO taxable income, they will not be eligible for the credit. I have highlighted where you can find the taxable income and the amount of credit on the Tax Summary.