Question

Appendix B: Charles and Debbie Stuart Information

For your second assignment, your new boss wants you to prepare Form 2441 for Charles and Debbie Stuart. Charles and Debbie Stuart are married with 2 young children, Ryan is 8 years old and his birthday July 13; and Daisy, a girl, is 12 and her birthday is November 15. Debbie works for the City of Dallas as a Police Dispatcher and Charles is an outside sales representative for Irby, LLC.

Facts:

Taxpayer:	Charles and Debbie Stuart 1000 Cowboy Lane Lewisville, TX 75000
Social Security Number	Ryan: 111-22-3333
Social Security Number	Daisy: 444-66-5555
Filing status	Married, joint
Social Security Number	Charles: 333-22-4444
Social Security Number	Debbie: 777-99-1111
Charles salary from Irby LLC	$40,000
Debbie salary from City of Dallas	30,000
Annual Child Care fee per child	4,000
Child Care Center, address is:	3 Fake Address Road Dallas, Texas 75114.
Child Care Center ID is:	34-1234567
Child care usage:	All day, every work day, for basically the whole year

Using the information above, prepare Form 2441 for Charles and Debbie. NOTE: To complete Form 2441, you will be required to complete other forms. Turn in all forms used to complete this deliverable.

Answer 1

If you hire someone to take care of your disabled spouse of dependent and you report income from employment or self-employment on your tax return, you may be able to take the credit for child and dependent care expenses by filing a Form 2441. But first you have to fulfill the eligibility conditions.

Form 2441		Child and dependent care expenses					Year
		Attachments:
Name   shown on return: Charles and Debbie Stuart, 1000, Cowboy Lane, Lewisville, TX 75000			SSN number	333-22-4444, 777-99-1111
Part I
1 Person or organisation who provided the care
Care provider Name/ID	Address	identifying No. (SSN/EIN)	Amount Paid
Child care center name	3 Fake Address Road, Dallas, Texas 75114	34-1234567	8000 (2 children, 4000 each)
Part II
2 Credit for child nd dependent care expenses
Qualifying person name		Qualifying person's SSN	Qualified expenses you incurred and paid to the person listed in Part I
First	Last
Charles	Stuart	333-22-4444	4000
Debbie	Stuart	777-99-1111	4000
		Total	8000
3 Maximum limit is 3000 for one and 6000 for two or more persons			6000
4 Earned income of charles			40000
5 Filing status jointly, so spouse's income			30000
6 Enter he amount from Form 1040/1040A/1040NR			150000
7 Decimal amount			0.2
8 Multiply line 3 amount by decimal point mentioned in 7			1200
9 Credit for child care expenses			1200
Summary: Charles and Debbie stuart will get $1,200 credit for the child and dependent care expenses and their taxable income will be after deductin the same: 40,000+30,000=70,000, 70,000-1,200=68,800