Child care expense

[Margaret CPA in OH]

New client has child care expenses, splits custody down the middle, so claimed, and alternates taking dependent exemption. So this year she does not claim dependent and my QF handbook shows she can still claim child care expense but not child tax credit.  However, I can't figure out how to have ATX Max allow child care expense with no child.  I have child listed with HOH but doesn't show up as Qualifying Person for care.  What am I missing?  New to me, most of my clients are older with no children at home.

[RitaB]

This is a shot in the dark, but if you have dependent living with taxpayer less than seven months, that might be the problem.

[Margaret CPA in OH]

Hmmm, client says they split exactly 50-50 but in any event, she is considered the custodial parent.  She has relinquished claiming the dependency exemption for 2017 as they alternate claiming the child.  But QF  references Notice 2006-86 that the 'custodial parent's release of an exemption to the noncustodial parent only applies for claiming a dependency exemption credit and child tax credit for the child.'  It has a little chart (love those little charts!) showing that release of exemption for the custodial parent still qualifies that parent to claim child as qualifying child for dependent care.  I just don't know how to make that happen in ATX.   I thought by indicating HOH and putting child's name there, that would work but it didn't.

No easy answers for me today!

[Margaret CPA in OH]

Hah!  Got it!  Recalling that the 2441 fields were blue (can fill in) I just typed in child's information.  If taken as dependent, that fills in automatically.  How grateful that I can still learn something new!