The IRS has released IRS Publication 503 and Form 2441 (Child and Dependent Care Expenses) and its accompanying instructions for the 2016 tax year. Form 2441 can be used to report participation in a Dependent Care Flexible Spending Account (DCFSA) and/or determine any eligible dependent care tax credit (DCTC). The Form 2441 is filed with the taxpayers Form 1040 when they file their federal tax returns. Employees who have elected the maximum $5,000 for 2016 in a DCFSA may still qualify for up to an additional $1,000 of the DCTC if their expenses exceed $5,000 and if they have two or more qualifying individuals and meet other DCTC requirements.
The 2016 versions of Pub.503, Form 2441 and instructions are essentially unchanged from the prior tax year.