The IRS released an updated Form 2441 and instructions for the 2018 tax year.
An individual who receives dependent care benefits must file Form 2441 with his or her tax return (Form 1040). Dependent care benefits include (a) amounts your employer paid directly to you or your care provider for the care of a qualifying person while you worked; (b) the fair market value of care in a daycare facility provided or sponsored by your employer; or (c) pre-tax contributions made under a dependent care flexible spending account plan.
A person who paid someone to care for a child or qualifying person may be able to take a credit for the child/dependent care expenses and exclude amounts from income. A person who received dependent care benefits must use Form 2441 to figure out the amount, if any, of benefits that may be excluded from income. Individuals receiving dependent care benefits as an employee should have those benefits reflected in Box 10 of Form W-2.
Taxpayers file Form 2441 with Form 1040 to determine the amount of their available dependent care tax credit. Participants in a dependent day care FSA must file Form 2441 with Form 1040 to support the income exclusion for their dependent day care FSA reimbursements.
The only change to the prior version of Form 2441 is that married taxpayers filing separately must check a box confirming that they meet the requirements to be considered unmarried for purposes of claiming the dependent care tax credit.
Click here for a copy of the form.
Click here for a copy of the instructions.
