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another tax question

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  • another tax question

    filing a return for an unmarried couple with two children. she claims as dependants, he pays child care. Turbo Tax is not letting me claim the child care expense for him, on the community forum questions it says he can't claim if not his dependant, but he did last year with no problem. Another answer says it is a glitch in Turbo Tax system, that he can claim it even if they are not his dependants. Tried to do the return on H&R Block, they either claim the children as dependants (the children lived with both of them the whole year), and if not claimed as dependants they won't let him claim the child care credit. In fact i cannot get Turbo Tax to not claim as dependants, they do not ask the necessary question, which is important when filing separately.

  • #2
    Was TurboTax's live chat able to help you?

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    • #3
      interesting. I could see how there would be red flags in claiming child care expenses when you show no dependents. I would expect this is "as designed" in Turbo vs bug.

      Did he use Turbo last year? when I tell turbo I have no dependents, it does not later ask me about their expenses nor would I expect it to.

      I personally would bypass turbo and talk to IRS. Just because some program or another lets you claim something, "no problem" doesn't mean it's ok with the IRS. Then I'd call Turbo to see how to make it happen.

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      • #4
        I found this on About.com

        Normally, the child must also be your dependent. If the child is not your dependent solely because you allow the non-custodial parent to claim the child as a dependent, then you may be able to claim the child care credit even though you aren't claiming the child as your dependent. Only the custodial parent can take the child care credit, however. (See Publication 503 for more details about this exception.)
        And here is a link to Publication 503.

        Publication 503 (2010), Child and Dependent Care Expenses

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        • #5
          when both are filing singly, the one with the higher income has to claim the child as a dependant. Turbo Tax asks this, I can't get H&R block to ask this. I suspect he can't deduct, although Turbo Tax allowed it last year. On the bright side I discovere that they can get a bigger child care deduction by listing the second eligible child and stating you paid zero for the child. the amount for the child who is paying child care, goes up by 3000 and 20 per cent of that is an allowable deduction. so i think after this year, they are going to each claim one child on their returns.

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          • #6
            The higher income requirement usually only comes into play for the Earned income credit.

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            • #7
              Originally posted by wackymother
              I found this on About.com



              And here is a link to Publication 503.

              Publication 503 (2010), Child and Dependent Care Expenses
              yes, I read this too, and last year he did claim the child care expenses, which were only a couple of hundred dollars. this year they are over ten thousand, but you can only claim 3 thousand per child and then you get 20 percent of that as a credit. so the ten thousand gets you 600 off your taxes.

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              • #8
                I suggest you stop filing, as it seems to be inconvenient.

                RCI Member Since 24-Aug-1989/150-plus Exchanges***THE TIMESHARE GRIM REAPER~~~Exchanging/Searching/SW Florida/MO/AR/IA/Consumer Advocacy/Estate Planning/Sports/Boating/Fishing/Golf/Lake-living/Retirement****Sometimes ya just gotta be a dick

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                • #9
                  Originally posted by JLB
                  I suggest you stop filing, as it seems to be inconvenient.

                  yes, extremely inconvenient. Also, watching the two kids while i do the taxes. Also, lost sight inmy right eye so doing it with one eye closed and squinting at the tax info.

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