Spouse died, claim Child and Dependent Care Credit?

[ericfitch]

My wife and I have a 5 year old son.  My wife was a stay-at-home parent with no earned income.  Unfortunately, my wife unexpectedly died in September 2022.  I had to put my son in daycare for October-December 2022 so I could continue to work.  I incurred approximately $3,200 in expense for those months.  However, I'm unable to claim this expense on Form 2441 because line 19 is $0 (spouse didn't work).  However, technically I was single during that time period, and I'm only using MFJ because the IRS permits the surviving spouse to file MFJ in the year of death and that is the most advantageous filing status.

Does anyone know if I can claim the maximum $3,000 for my situation?  Like I mentioned, I was single during that period, and only put my son in daycare so I could work.  I didn't read anywhere in Publication 503 that addresses this situation, and I even called the IRS and the person I spoke with said she didn't know.

Thanks!

[DMarkM1]

You can use the fact that your spouse was "Unable to care for herself" for October through December.  In the "Dependent Care Credit" interview select that your spouse was "Disabled" and indicate "3 months" for the time.  That will impute 3 months of earned income ($250/each) to her.  This will allow credit for those months.

[ericfitch · Accepted solution]

Thank you for the reply.  I had already considered your solution, but that would only give me $750 of imputed income, and it would have been saying my spouse was disabled instead of deceased.  However, I believe I found the answer. 

I switched to "Forms" mode and selected Form 2441.  Halfway down Part II there is a box that says "Married Filing Jointly Smart Worksheet for Student/Disabled Person's Earned Income"  Option C in that box says "Check the box if the taxpayer or spouse died...."  I checked the box, my spouse's income was disregarded, and everything calculated correctly.

I am very disappointed with Turbo Tax.  I reviewed all of the interview questions, and there were no questions that would have prompted that box to be checked.  I would think if the taxpayer is widowed, the spouse died during the tax year, and Child and Dependent Care expenses were entered, TurboTax should generate an interview question asking if the deceased spouse's income should be disregarded.  If I didn't happen to notice that little box, I would have paid an extra $600 in tax.

[Critter-3]

Did you indicate your spouse passed in the MY INFO section ?    If so I am glad you found the FORMS mode work around for this situation. 

[ericfitch]

Yes.  I marked myself as Widowed and said my spouse passed away in 2022.   For my wife, I checked the box that she passed away and entered 9/18/2022 as the Date passed away.  TurboTax correctly selected my filing status as MFJ.