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This came up in the A&T Parenting thread, but I have a question regarding the Child and Dependent Care Credit and Form 2441: I have two kids in daycare. We have a DCFSA and maxed out our contributions for 2021 ($10,500). Our total care expenses were over $28,000 though. When I filled out the information in Turbo Tax, it took the details for my son and the DCFSA, and since my son's expenses ($14,000) maxed out the DCFSA contributions, and the DCFSA is an excluded benefit that exceeds the $8,000 credit cap, it didn't even let me enter my daughter's information. But according to Form 2441 the credit cap is $16,000 for two or more qualifying persons. In this case shouldn't I have received a credit for $5,500 ($16,000 - $10,500)? Or is there a phaseout or something I'm missing? If I file an amended return for 2021, can I get back that $5,500? How much of a pain in the rear end is this going to be? Edit: So I went back through Turbo Tax and was able to get an additional $1,100 credit. Apparently the IRS already accepted my amended return. So there's that! ExcessBLarg! fucked around with this message at 22:04 on May 3, 2022 |
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May 3, 2022 20:49
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| # ¿ May 20, 2024 15:46 |
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I realize the IRS won't automatically have paperwork for self-repeorted income and all, but why can't the IRS have a portal where you can download forms (or at least numbers) for what they do have? If it's a problem that people are estimating W-2 income in tax software then said software should straight-up be able to import it from an IRS-provided API.
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May 8, 2022 16:23
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I have an odd situation (don't we all?) that I'm not quite sure how to handle. There's actually two parts, some guidance would be appreciated: 1. Both my children were provided monetary compensation while participating in the Pfizer COVID vaccine trial for under 5s, and I received 1099-MISCs for them for 2022. The amounts are $1010 and $815 if that matters. Arguably to complicate things further, part of the compensation was received in 2021, but we only ever received 1099-MISCs for 2022 which I believe reflects the total amount of their compensation. Since this amount is over $400 (is this the limit?) I think I need to file 2022 tax returns for both of them as self-employed with the 1099-MISC being their only source of income? 2. To complicate things further, I think my wife filled out her tax ID for my son and not my son's. So one of the 1099-MISCs is in my wife's name, while the other is in my daughters. Technically this is incorrect, but as we'd be paying tax on it either way, I wouldn't have to file separately for my son if we leave it as is. Should I not bother pursuing correction? Sorry for the questions, I really never considered my under five children would be self-employed. We really just wanted to protect them as best we could during the pandemic.
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Mar 20, 2023 17:20
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H110Hawk posted:Fill it out as it's on the forms unless the ssn is wrong, then correct that first. The other form has my daughter's name, correctly, but a blank TIN. I'm pretty sure I gave them the correct TIN (her SSN) on the I-9 (?). I assume the IRS is "aware" of them since I've had to file our taxes in the past claiming them as dependents. Yeah I'll contact Pfizer too, thanks!
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Mar 20, 2023 18:43
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Guy Axlerod posted:Those amounts appear to be under the filing threshold. If they didn't have any tax withholding, and they are under the threshold, don't bother. Get the one 1099 put in the right name, or you'll need to include it with your wife's income. I already have 529s for both kids, but I assume those contributions are only deductible from our state taxes. Fundamentally I'm "OK" paying tax on the amount if I need to, I just want to make sure I do it correctly. I'm a little less OK with paying 3xTurbo Tax now to do it I guess. ExcessBLarg! fucked around with this message at 20:52 on Mar 20, 2023 |
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Mar 20, 2023 20:49
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MadDogMike posted:Is it marked as "other income" on the 1099-MISC? I went through the IRS interactive tax assistant and since my kids have earned income of $0 and unearned income less than $1,150 it seems they do not have to file. If their income exceeds $2,300 then I guess I would be subject to additional tax, which I wasn't aware of before, but fortunately isn't the case. This is unrelated, but for Interest/Divident income parents can elect to include them on their own taxes, so that they don't have to file separately for their children. Is there actually a tax rate advantage to that though?
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Mar 21, 2023 20:43
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