F2441-526 - Form 2441, Child Care Expenses

[wilsoneee]

Hi:

I tried to file my 2022 tax and then got the following rejection message:

"F2441-526 - Form 2441, Child Care Expenses, Part II, Line 2(b), each 'Qualifying Person SSN' provided must not be the same as a 'Qualifying Person SSN' in Part II, Line 2 of Form 2441 in another accepted tax return for the same tax year."

As far as I understand, somebody claimed my child as a "qualifying person" on her form 2441 in her tax return.

My situation is that, I'm divorced with a child with shared custody, and my ex-wife and I agreed that I claim my kid in even years while she claim him in odd years, so for 2022 tax, she should not have claimed the kid but she already did, before me.

I talked with her and we agreed to fix it together. Should she simply remove her form 2441 and amend her return?

I think she also had a filing status of "Head of Household" , using the child as the qualifying person, but she did NOT claim the kid as her dependent. Is that also a problem that prevents me from claiming the kid?

Much appreciated!

[Mike9241]

per IRS PUB 503 page 4 to be a qualifying person, your child, for these credits you must be the custodial parent. the tax laws do not recognize what you agreed to. The custodial parent is the parent with whom the child lived for the greater number of nights in 2022. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. For details and an exception for a parent who works at night, see Pub. 501. The noncustodial parent can't treat the child as a qualifying person (for these credits) even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents. Thus, if you are not the custodial parent all you will get is the dependent credit and to get that you must get a sign form 8332 from her which must be included with your return. 

if you are the custodial parent then, she has to amend her return to eliminate the 2441 and the HOH filing status. 

[NCperson]

@wilsoneee who did the child spend more than 6 months with? (Please do not state it was the same - there are an odd number of days in the year!).  THAT is the custodial parent. 

if she is, then she has to amend her tax return but the only thing she is passing to you is the Child Tax Credit; any other credit she was eligible for related to the child stays with her. she still files HOH.  The depenent care credit can't be passed to you, so filling out Form 2441 on your tax return does not matter.  You can't use this child as the basis of filing HOH. Best to complete form 8332 and have her sign - will make things easier. 

However, if you are the custodial parent, you get all the tax credits and can file HOH (assumng you have not remarried) .  She retains none of the tax credits related to the child and can't file HOH (unless there is another Qualifying Person in her household).

[xmasbaby0]

@wilsoneee 

Are you the custodial parent?  Do you have an agreement with the other parent to allow the other parent to claim them--due to divorce or that you live apart and share custody?  Did one of you sign a Form 8332?

If there is a signed 8332 then the custodial parent retains the right to file as Head of Household, get earned income credit and the childcare credit.  The non-custodial parent gets the child tax credit for children under the age of 17.

As far as the IRS is concerned, the custodial parent is the one with whom the child spent the most nights during the tax year--at least 183 nights.

If you are not the custodial parent, you cannot use the childcare credit.   Only the custodial parent can use the childcare credit.  If you incorrectly tried to use the childcare credit, remove that form from your own return.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/small-business-processes/delete-form-244...

Further-----since the other parent has already filed a tax return using the child's SSN, you cannot e-file this time if she claimed the child as a dependent on her return.  You will have to print, sign and mail your tax return.   

[wilsoneee]

Thanks for your reply! Yes I am the custodial parent and I told her to amend her return, and then she and I have 2 follow up questions:

1. Let's say after she amends her return by removing 2441 and the HOH filing status, can I e-file again, or do I have to paper file?

2. Can she actually just remove 2441 but keep the HOH filing status and keep the child as a non-dependent?  Basically, can we two be both HOH with the child as the qualifying person (because he spent half/half in the 2 families?

Thank you!

[Mike9241]

1. Let's say after she amends her return by removing 2441 and the HOH filing status, can I e-file again, or do I have to paper file?

You'll have to paper file. consider that it will take the IRS months (various IRS posts say 2 to 6 months) to process an amended return even one that is e-filed. Also, Turbotax will shut down e-filing of 2022 returns on 10/31/2023. she has to send in a signed form 8332 to claim the child for certain credits which you as the custodial parent provide her. since it is not possible to e-file a signed form, if she desires to e-file the amended return she can include form 8453 with the 8332 box checked. she then has a limited time to mail in that form with the 8332. Otherwise, she must mail in her amended return. 

8453 instructions

If you are filing your tax return using an online provider, mail Form 8453 to the IRS within 3 business days after you have received acknowledgement from your intermediate service provider and/or transmitter that the IRS has accepted your electronically filed tax return. If you don’t receive an acknowledgement, you must contact your intermediate service provider and/or transmitter.
Mail Form 8453 to:
Internal Revenue Service Attn: Shipping and Receiving, 0254 Receipt and Control Branch Austin, TX 73344-0254

2. Can she actually just remove 2441 but keep the HOH filing status and keep the child as a non-dependent?  Basically, can we two be both HOH with the child as the qualifying person (because he spent half/half in the 2 families?

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"because he spent half/half in the 2 families". as per my prior thread the custodial parent is the one the child spent the most nights with during the year. a 365 day year makes a 50/50 split almost impossible for 2022. I suppose, there can be situations where the child might spend one or more nights away from both parents such as with grandparents.   However, in case of the same number of nights the custodial parent is the one with the highest adjusted gross income. 

*******************************************

nope. to be head of household the taxpayer must be a custodial parent for the year. so in the case of divorced parents with only one qualifying child there can only be one head of household in any year. if there were multiple qualifying children with one parent being the custodial parent of one and the other parent being the custodial parent of another it would be possible for both to file as HOH. 

[NCperson]

@wilsoneee to file HOH, there are two critical rules

1) you paid more than 1/2 the cost of keeping up your home.

2) you claim a qualified person.  As you describe this situation, your child  is a qualified person.  One of the rules that defines a "qualifying person" for HOH purposes is that they live with you more than half the year. 

So you can file HOH because you state you meet both conditions. 

read page 13 

https://www.irs.gov/pub/irs-pdf/p501.pdf

and especially this in the middle and rightmost columns: 

if these 4 conditions are true (which from your statements all appear to be true): 

1) you two are divorced

2) the child's parents provide more than 50% of the child's support

3) the child is in the custody of 1 or both parents for at least half the year 

4) you sign form 8332 indicating you won't be claiming this child and give the other parent the right to and that other parent files the form with their tax retugn

Then, only the noncustodial parent can:
• Claim the child as a dependent; and
• Claim the child as a qualifying child for the child tax credit, the credit for other dependents, or the additional child tax credit.

However, this doesn’t allow the noncustodial parent to claim head of household filing status,
the credit for child and dependent care expenses, the exclusion for dependent care benefits,
or the earned income credit

and as stated in the thread above, if the number of nights is EXACTLY the same: (half way down page 13 on the right)

"Equal number of nights. If the child lived with each parent for an equal number of nights
during the year, the custodial parent is the parent with the higher AGI."

make sense? 

[wilsoneee]

Very clear, thanks!