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Drake Software User’s ManualChild and Dependent Care Expenses CreditWhere to Enter DataEnter data on both the 2441 screen and on screen 2 for each dependent for whomexpenses were incurred._NOTEForm 2441 appears on the 1040 return. On a 1040A, see Schedule2 in View/Print mode. This credit cannot be claimed on a 1040EZ.No Income for SpouseTo qualify for the child-care credit, both parents must have earned income, be fulltimestudents, or be disabled. If a spouse does not have income but qualifies for thecredit, the spouse’s earned income must be entered at the bottom of the 2441 screen inthe Earned income for 2441 purposes ONLY field.Figure 5-34: Earned income fields on 2441 screenAn entry in these fields affects Form 2441 amounts only and must be at least as greatas the child-care expenses.Employer-Provided Dependent Care BenefitsIneligible Filing StatusesDependent care benefits provided by the employer (box 10 on the W2 screen) adjuststhe credit by the amount provided. Any amounts above the allowed credit appears onthe “Wages, salaries, tips, etc.” line of Form 1040 with the notation “DCB.”A taxpayer with a filing status of 3 (Married Filing Separately), 6 (Taxpayer did notlive with spouse even one day of the year), or 7 (Taxpayer did not live with spouse thelast six months of the year) on screen 1 is not eligible for the child-care credit.Carryover from Previous YearIf there is a carryover of the credit from the previous year, enter the amounts in theappropriate fields and then create a statement listing the circumstances and amounts.Use statement number 47. For more information on adding an unformatted statementin Drake, see “Unformatted Schedules” on page 161.Tax Year 2008 119