• Refer to Pub 4012 starting at page G-13. 
    • Note: If the care provider worked in the taxpayer’s home and the total amount paid was over $2,700 in 2024, determine if the taxpayer is required to file Schedule H, Household Employment Taxes. If this form is required, the return is out-of-scope.
  • This credit is available if the taxpayer paid someone else, including an organization, to care for a qualifying person. A qualifying person is:

(1) A dependent child who was under age 13, OR

(2) A dependent or spouse, regardless of age, who could not care for him/herself

AND (3) this was done so the taxpayer could work or look for work (the qualifying person, the one needing care, must have lived with the taxpayer for more than half the year).

    • Note: In the year that a child turns 13, these expenses are allowable only for the part of the year before their 13th birthday.
    • Note: For MFJ returns, both taxpayer and spouse must have earned income, unless disabled or a full-time student.
  • While this credit is for expenses for care, not for education, education below kindergarten is an acceptable expense, as is after-school care if the primary purpose is not educational. Also acceptable are day camp, but not overnight camp, adult day care, and in-home care.
    • Expenses for care do not include amounts that the taxpayer paid for food, lodging, clothing, education, and/or entertainment. However, the taxpayer can include small amounts paid for these items if they are incidental to and cannot be separated from the cost of caring for the qualifying person.
  • Note:  TaxSlayer screens were completely redesigned for TY2023.  See screen shots and instructions on Pub 4012 pages G-14 through G-16.
  • Go to the F2441 - Child and Dependent Care Credit Expenses page [Deductions > Credits Menu > Child Care Credit].
    • Child-care provider information is now part of TaxSlayer carryforward.
  • Answer “Yes”, click “Continue”.
    • Enter all provider information.
      • Note: If an EIN/SSN of a provider is unavailable, the return must be paper filed. (Create a note saying that; see page 8.)
    • When done, click “Continue”.
    • On the “Recipient(s) of Care from …” provider page, chose the dependent and enter Amount Paid.
      • Do not add qualifying persons here. All dependents and qualifying person should be entered in the Basic Information section, on the Dependents and Qualifying Children page – see page 20.
      • Enter the total amount paid to this provider for each dependent, including any amounts paid by the employer and reported in box 10 on the Form W-2. (If any dependent care benefits were paid by the employer, make sure that this amount has been entered correctly on the W-2 page; amounts entered in box 10 appear automatically on line 12 of Form 2441.)
      • Note: When a taxpayer has two qualifying persons for this credit but only one qualifying person has child and dependent care expenses, the IRS still allows use of the $6,000 limit that applies to two or more qualifying persons. In this situation, add a second dependent who has no expenses, but check the box “Qualifying Person had no expenses.”
      • If a child does not qualify for this credit, do not enter expenses, and do not check the box about having no expenses.
        • If TaxSlayer lists a person who does not qualify for this credit, there is no way to remove the person. Simply do not enter expenses, nor indicate there are no expenses, and TaxSlayer won’t include that person in its calculations.
    • When done, click “Continue”.
    • Additional Care Providers can be added.
      • When done with the section, click “Continue.”
    • “Dependent Care Benefits” page - enter any forfeited benefits or those received but not listed on a W-2.
    • “Disabled or Full-Time Student Exception” - If the taxpayer and/or spouse were a full-time student or disabled, then they are considered to have worked and earned income.
      • This information is on page 1 of the Intake Booklet. 
      • “Full-time student” means being enrolled for at least five months (any part of a month counts as a full month) during the tax year, at a “brick and mortar” school. That school doesn’t have to be a college or university, but the enrollment must be for the number of hours or courses considered full-time attendance by the school. 
    • Answer the “Delayed Care Payments” question (usually “No”).
    • Click “Continue” to see the summary result for this credit.
  • Form 2441 is one of ten for which a PDF can be created from a menu within the return. 
  • Note for CA returns: CA has a nonrefundable credit for Child and Dependent Care Expenses, which requires CA Form 3506. TaxSlayer automatically generates this after Form 2441 information is entered in the Federal Section. 
    • The CA credit is not available to taxpayers whose federal AGI is over $100,000.
    • If the provider’s business address, entered on F2441 (above), is the same as the address where the care was provided, then no action is needed for CA Form 3506.
    • Otherwise, go to the Child Care Credit page in the State Section [Credits > Child Care Credit].
      • Note: Entering information about other funds received is not required; that information does not affect the calculations in CA Form 3506. 
    • When done with this form, click “Continue.”

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