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How to enter Dependent Care Credit, Form 2441 in Lacerte

SOLVEDby IntuitLacerte Tax48Updated February 23, 2022

For tax year 2021 only:

  • The expense limit has been raised to $8,000 for one individual, and to $16,000 for more than one.
  • The maximum credit percentage has been increased to 50% and the credit itself is refundable.
  • AGI phaseout has been significantly increased. This will be seen in the calculations on Form 2441.

Follow these steps to enter dependent care information:

  1. Go to Screen 33, Dependent Care Credit (2441).
  2. Enter the following information in the Persons & Expenses Qualifying for Dependent Care subsection.
    • First name (code 17): If the eligible child's name, Social Security number, and date of birth are different from the name, Social Security number, and date of birth entered on Screen 2, Dependents, in the respective input fields enter the child's first name, last name, suffix or title, Social Security number, and date of birth.
      • You can press [Ctrl]+[T] and select the qualified dependent to enter the information from Screen 2, Dependents.
      • The child's name and Social Security number entries print beside Form 2441, line 3.
    • Last name (code 18)
    • Title or suffix (code 24), if applicable
    • Date of birth (code 22) - If the eligible child was born and died in the same year and didn't have a Social Security number, enter Died in the Social Security number input field. 
      • A copy of the child’s birth certificate, death certificate, or hospital medical records should be attached to Form 2441.
    • Social security number (code 19)
    • Qualified dependent care expenses incurred and paid in (current tax year) (MANDATORY) (code 20) - This entry is mandatory to generate a Child and Dependent Care Credit.
      • Enter the qualified expenses incurred and paid for the care of the qualified person(s).
      • Lacerte limits this amount to $3,000 when the number of dependents cared for was one; or to $6,000 when the number of dependents cared for was two or more.
      • Lacerte might reduce the expenses when the taxpayer received employer-provided benefits and Form 2441, Part III applies. The limited qualified expenses carry to Form 2441, Part II.
    • Disabled (code 23), if applicable: Select the box (or enter 1), if dependent care expenses were incurred due to a disabled spouse or dependent who isn't able to care for himself or herself.
    • The dependent care credit won't be allowed for a person over the age of 13 who isn't disabled.  In the General Information screen, use Other earned income (or if spouse was disabled or a student) [A] (Screen 33, codes 4 and 54) to adjust the earned income for a disabled spouse.
  3. If you have multiple Persons & Expenses Qualifying for Dependent Care Credit, select the 2 from the left panel in the Dependent section and repeat until all dependents have been listed.
  4. Enter the following information:
    • Name (code 10): Enter the name of the person(s) or organization(s) providing dependent care. This information prints on line 1, column (a).
    • Street Address (code 11): Enter the complete address of the person(s) or organization(s) providing dependent care. There are state and ZIP code fields for domestic addresses and region, ZIP code and country fields for foreign addresses. This information prints on line 1, column (b).
    • City (code 12)
    • US: If the address is within the United States:
      • State (code 26)
      • Zip (code 27)
    • Foreign: If the address is outside the United States:
      • Region (code 28)
      • ZIP code (code 29)
      • Country (code 30): Choose the appropriate country using the dropdown menu provided.
    • Identification number (SSN or EIN) (code 13): Enter the identification number of the person(s) or organization(s) providing dependent care. This information prints on line 1, column (c).
    • Total amount paid to care provider in 2018 for all dependents (code 14): Enter the total amount paid to the person(s) or organization(s) providing dependent care. If person(s) or organization(s) cared for more than one dependent, enter the total amount paid for all dependents. This information prints on line 1, column (d).
  5. If you will be filing the return electronically, complete the following EF Only information, otherwise skip to the next step.
    • Identification number is SSN (code 21): Select the box (or enter 1) if the provider’s identification number entered in identification number (Social Security number or EIN) (or code 13) is a Social Security number.  If no entry is made in this field, Lacerte assumes the entry is an Employer Identification Number.
    • Taxpayer is unable to find the provider to get the identification number as provider has moved (code 31): Select the box if the taxpayer is unable to find the provider to get the provider’s identification number as the provider has moved.  This entry will be included in the e-file to show that due diligence has been taken to obtain the provider’s identification number.
    • Provider refuses to provide the identification number (code 32): Select the box if the provider refuses to provide the taxpayer with the provider’s identification number. This entry will be included in the e-file to show that due diligence has been taken to obtain the provider’s identification number.
  6. If you have multiple Persons or Organizations Providing Dependent Care to report, select the 2 from the left panel in the Provider section and repeat step until all Providers have been listed.

Additional information including overrides, adjustments, and prior year expenses can be entered using the General Information link available in the left panel.

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