The IRS has released IRS Publication 503 and Form 2441 (Child and Dependent Care Expenses) and the accompanying Form 2441 Instructions for the 2018 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 2018 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.
Generally, those who are married must file a joint tax return to claim the Child and Dependent Care Expense credit. New on Form 2441 this year, there is a “married persons filing separately” checkbox. If you claim the credit and your filing status is married filing separately, you are now required to show you meet the special requirements detailed in the instructions.
If you used Form 1040A or 1040-EZ in the past, these forms are no longer available and you must now use Form 1040 along with any applicable schedules. Otherwise, the 2018 versions of Pub.503 are essentially unchanged from the prior tax year.