How can I ask TurboTax to move Line 24 of Form 2441 to Line 28 of Schedule E?

[Anonymous]

Line 24 of Form 2441 is "deductible dependent care benefits", and the instructions say that it should go to Line 28 of Schedule E (for a partnership). But TurboTax Home & Business does not seem to do anything with Line 24 of Form 2441.

[MichaelDC]

Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Is that entered yet in TurboTax?

[Anonymous]

Yes, it was entered correctly in TurboTax, and that is why TurboTax calculated Line 24 of Form 2441 correctly.

[MichaelDC]

Any chance it could be on Line 19, Sch E? I doubt it.

[Anonymous]

No, it is not.  Moreover, my federal tax does not change after entering the information in box 13 of Schedule K-1 (Form 1065) with code O for dependent care benefits.

[MichaelDC]

Please check if you got a credit on your F2441. Form 1040, Line 49.

[Anonymous]

No, I did not.

[MichaelDC]

OK, I think we need to handle this like a UPE. While I'm answering, can you check if you have a marginal 1040, Line 7 entry, ie DCB with an amount.

[Anonymous]

Thanks for the answer.  Yes, it does have a DCB amount if the DCAP totals more than $5000.

[MichaelDC]

OK, the UPE should offset the DCB on line 7. Just make sure that you have the child care info (expenses paid, etc.) are entered. DCB's show up on 1040, Line 7 unless you show that you used it for dependent care.
To enter your childcare expenses follow the steps below.
• Click Deductions & Credits.
• Continue to Deductions.
• Click on I'll choose what I work on (if shown)
• Scroll down until you see Child and Dependent Care Credit
         * Click Start

[MichaelDC]

Checking out for our weekend. I suggest you post a new question if you need an answer before Saturday. Good Luck!

[MichaelDC · Accepted solution]

Some K-1 entries aren't handled automatically by TurboTax. The theory and mechanism of the Deductible Dependent Care Benefits are very similar to the handling of Dependent Care Benefits of an employer.

Whereas, for an employee, the business (employer) takes the deduction; the partnership is not allowed to take an ordinary deduction, but instead to passes the deduction to the partner as a separately stated deduction. The partner then takes the deduction on their tax return.

On the screen titled Describe the Partnership, select the box for I am required to pay supplemental business expenses on behalf of this partnership/LLC for which I am not reimbursed. (see screenshot below)

When you get to the Miscellaneous Supplemental Expenses screen,

·         Enter the Schedule K-1, Box 13, Code 0 amount in the amount field.

·         Enter Deductible Dependent Care Benefits  in the description field.