Form 2441 - Child care question

[octane99]

Nelson,

I searched the forum and can't find related form 2441 question. I participated the Childcare flexible spending account plan provided by the employee. In the instruction for form 2441. it said we must put each qualified person's SSN into column b of line 2. My child was born in Canada and he does not have the SSN we only have an ITIN number for her? Do we qualify?

Secondly, my wife has some Canadian income before she moved into US. which I plan to use form 2555 to exclude. In line 19 of the form 2441, it will ask my wife's income, I am not sure if I can still put her Canada income there even I plan to exclude it. If I can't then I guess all my pre-tax contribution will become taxable.

Assume I and my family left Canada on September, but for some reason, I want to report the whole year income to CRA. I found that I can't claim moving cost out of canada. However, Can I claim my child care cost in US after I left Canada ?

Thanks a lot.

[nelsona]

There is no reason to report your world income after you left. In no case can you report moving expenses anyways. Your childcare expenses should be fine, as long as you meet all other criteria.

For form 2441, an ITIN works as well as an SSN for IRS purposes.

You can still use her wages, even though they are later excluded. Remember that in US child care expense are only deductible if BOTH parents aree working. That is why there is a need for you both to show earned income. If she continues not to work in 2008, all those expenses incurred in 2008 will become taxable.