Form 2441

Form 2441

A form that one files with the IRS to claim a tax credit for expenses incurred for child care. A parent may file Form 2441, for example, if the parent paid a daycare service or a nanny to babysit while the parent was at work.
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With form 1040A, claim the credit on Schedule 2, and on Form 2441 with Form 1040.
Finally, dependent care expenses must be recalculated as if a joint Federal Form 2441, Child and Dependent Care Expenses, had been filed, because the deduction for dependent care expenses is calculated based on Federal earned income.
The authors, however, point to a case which demonstrates that the perceived downside of paying the employment tax might be significantly offset through options such as an employer-sponsored flexible spending account or a Form 2441 credit.
Taxpayers that do not have an employer-sponsored FSA have the option of claiming a credit for childcare expenses on Form 2441.
Thus, the taxpayer who wishes to list on form 2441 the child care expenses for a child under age one can still take the EIC provided for in IRC section 32(b)(2) but cannot take the additional credit for a child born in 1991.
The credit, which is a dollar for dollar reduction in the taxpayer's federal income tax liability, is claimed on Form 2441 - Credit for Child and Dependent Care Expenses.
Individual Income Tax Return; Schedules A and B (Form 1040) - Itemized Deductions and Interest and Dividend Income; Form 2441 - Child and Dependent Care Expenses; and Publication 553 - Highlights of 1998 Tax Changes.