|
Posted by Phil Marti on April 14, 2008, 6:46 am
Please log in for more thread options
"FSH" wrote:
> Ok here is the situation: My wife works for a company and has day care
> expenses taken out pretax. Her wages show up on W2, box 1. Her child
> care benefits show up on W2, box 10.
> I am self employed and showed a loss in my business last year.
>
> Question 1: On 1040 wages (line 7) do we add her W2 box 1 and 10 together
> or do we just use line 1?
You start with W-2 Box 1 on line 7 and Box 10 goes to the 2441. The Box 10
amount may wind up on line 7, but that depends on how things turn out on the
2441.
> Question 2: Since I took a loss on my business, do I technically have "no
> earned income", therefore I get no benefit under form 2441?
Yes.
> It doesn't seem fair that just because I showed a loss that I don't get a
> credit for daycare expenses.
I realize that whenever a provision in the law works against you it seems
unfair, but that doesn't change it.
> Any help would be appreciated, as I can't find the answer to these
> questions anywhere and the clock is ticking!
The answers are in the instructions for the 1040 and 2441 and Publication
503.
--
Phil Marti
Clarksburg, MD
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap