User's Manual - Drake Software

Drake Software User’s Manual
Elderly/Disabled Credit
was a student or disabled. This information is entered on the 2441 screen in the
Earned income for 2441 purposes ONLY field (Figure 5-36).
Figure 5-36: Earned income fields on 2441 screen
An entry in these fields affects Form 2441 amounts only and must be at least as great
as the childcare expenses.
Employer-Provided Dependent Care Benefits
Ineligible Filing Statuses
Carryover from Prior Year
Elderly/Disabled Credit
Screen code: R
Dependent care benefits provided by the employer (box 10 on the W2 screen) adjust
the credit by the amount provided. Any amounts above the allowed credit appears on
the “Wages, salaries, tips, etc.” line of Form 1040 with the notation “DCB.”
A taxpayer with a filing status of 3 (Married Filing Separately), 8 (MFS – Claiming
spouse’s exemption did not live with spouse one day of the year), or A (Claiming nonresident
alien (NRA) spouse’s exemption) on screen 1 is not eligible for the child and
dependent care credit.
For a carryover of dependent care credit from the prior year, enter the amounts and
create a statement listing the circumstances and amounts. Use statement number 108
on the SCH screen. For more information on adding an unformatted statement in
Drake, see “Unformatted Schedules” on page 189.
Use screen R, accessible from the first Credits tab, for Schedule R, Credit for the Elderly
or the Disabled.
TIP
If the credit does not show up in the calculated return, make sure the
taxpayer’s AGI is not too high to qualify for the credit.
Home Energy Credits
Screen code: 5695
Use the 5695 screen, accessible from the first Credits tab, for Form 5695, Residential
Energy Credits. To learn more about the federal tax credits for energy efficiency and
the products that qualify, visit the U.S. Department of Energy’s website. A link to this
site is available on the 5695 screen.
Tax Year 2012 143