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Federal input screens

Screen Cr - Dependent Care, CTC/ODC, Sch R, Foreign Tax Credit (1040)

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Overview

Use this screen to enter information to complete Form 2441, Child Tax Credit and Credit for Other Dependents, Schedule 8812, Schedule R and some Foreign Tax Credit information.
note
Minnesota: The amount entered for taxable disability income on federal Cr screen transfers directly to Minnesota Schedule M-1R, and nontaxable disability income transfers to the Additional nontaxable income lines on Forms M-1PR, M-1CD, and M-1ED.

Form 2441 - Child and Dependent Care

Use this section to enter child and dependent care expenses to complete Form 2441. UltraTax CS uses the information that you enter here and in the
Dependents
 statement in the 1040 screen in the calculation of the deductible and excludable amount.
Provider information
Use this statement to enter each provider's name, address (including foreign address information, if applicable), Social Security number or Employer Identification number, tax-exempt status, and amount paid. This statement also allows you to identify when the expenses were incurred and paid, and if there is any employer-provided care. If the employer furnished the care, enter code
3
, then enter the employer's name as the provider in the Provider's Business Name column. UltraTax CS reports the employer's name in column (a) and prints "See W-2" in column (b) on line 1 of the Form 2441. If the employer paid a third party on the taxpayer's behalf (rather than furnishing child care or hiring a care provider), enter code
1
 then enter the provider's complete information. The
Amount Paid
 field should include the amount the employer paid to the third party. The statement information is used to determine the limitation amounts and the deductible amount. Enter the amounts paid for each dependent in the 1040 screen in the
Dependents
 statement.
note
  • A custom fieldview can be set up in the Provider Information statement to easily add or remove care providers. Fieldviews saved in a previous year version of UltraTax CS will proforma into the current year application.
  • If the care provider is a business, enter the name in the
    Provider's Business Name
     field and enter an employer identification number (EIN) in the
    SSN/EIN
     field. The default format of the
    SSN/EIN
     field is the social security number (SSN) format "###-##-####." When entering an EIN, make sure to enter the number with the correct format "##-#######." When using the
    Provider's Business Name
     field, do not enter data in the
    Provider's First Name
     or
    Provider's Last Name
     fields.
  • If the care provider is a person, enter the name in the
    Provider's First Name
     and
    Provider's Last Name
     fields and enter a social security number (SSN) in the
    SSN/EIN
     field. When using the
    Provider's First Name
     and
    Provider's Last Name
     fields, do not enter data in the
    Provider's Business Name
     field.
  • When the
    Require a password to display SSNs
     box is marked in the Setup > Security > Security Configuration tab, the Social Security number will display as "###-##-####."
  • Tax Exempt / LAFCP / Due Diligence
     field: Due diligence codes are available to use when a care provider's TIN is not known. See the Form 2441 instructions for further information regarding due diligence.
  • State
     field: If
    CA
     is entered in the
    State
     field, provider information for child and dependent care on the federal Cr screen transfers to the corresponding statement on the California CACr screen.
  • State Use CA/HI/ME/OR
     field: The codes that are available in this field are specific to the state postal code entered in the
    State
     field. If state use codes are not applicable to the entered state, state use codes will not be available. To apply the correct numbers to each state, enter
    CA
    ,
    HI
    ,
    ME
    , or
    OR
     in the
    State
     field enter one of the following in the
    State Use CA/HI/ME/OR
     field.
    • For California, enter the provider's telephone number in
      XXX-XXX-XXXX
       format.
    • For Hawaii, enter the general excise tax license number.
    • For Maine, enter the quality child care certificate number. The quality child care certificate is a 4-digit number issued by the state. Only one qualified child care certificate number shows on the Maine form, but the amount of total qualified child care is calculated separately for each line on the statement that contains a qualified care certificate number.
    • For Oregon, enter the provider's telephone number, format XXX-XXX-XXXX.
  • For qualified expenses for
    2024
     that were paid in
    2025
    , refer to IRS Pub. 503 to determine the amount to increase the current-year credit. Enter the amount of preparer calculated credit as code
    2, PYE - Prior year's credit allowed
    , in the Paid Code column. Enter the name and taxpayer identification number of the person for whom the expenses were paid in the Provider's First Name, Provider's Last Name, and SSN or EIN columns. UltraTax CS prints CPYE, credit amount, and the name and taxpayer identification number of the person for whom you paid the prior year's expenses next to the current-year credit line.
Qualifying person information...
Enter the qualifying person's first name, last name, Social Security number, qualified expenses incurred and paid, indication if disabled, and their complete date of birth (MM/DD/YYYY) in the
Nondependents
 statement. The information is reported on Form 2441, Page 1.
note
  • When the
    Require a password to display SSNs
     box is marked in the Setup > Security > Security Configuration tab, the Social Security number will display as "###-##-####."
  • If the qualified expense column is blank, nondependent information does not transfer.
  • If the qualifying person's
    Date of Birth
     field is blank, his or her information will not transfer to Form 2441.
  • If the qualifying person is over the age of 13 and not disabled, his or her information will not transfer to Form 2441.
  • For qualifying persons who are dependents, enter qualifying person information in the
    Dependents
     statement in the 1040 screen.
  • For New York returns, enter
    1
     in the attached statement for qualifying persons claimed as exemptions.
  • If the qualifying person received a six-digit identity protection PIN (IP PIN) from the IRS, enter the IP PIN in the
    IP PIN
     column. The IP PIN is used for electronic filing only.
Total qualified expenses incurred in 2023 (Force)
Complete this field if the total expenses incurred and paid in 2023 from the care provider statement is not equal to the total qualified expenses incurred in 2023. Enter the total amount of expenses incurred in 2023, regardless of when the expenses were paid. The amount in this field overrides calculated amounts for Form 2441, Part III.
Taxpayer is considered unmarried for Form 2441 purposes
Enter
X
 in this field if the taxpayer meets all the requirements to be treated as unmarried for purposes of determining the credit and exclusion on Form 2441. If the taxpayer does not meet all the requirements when filing as married filing separately, leave this field blank. The taxpayer can only take the exclusion (see Form 2441, Page 2, Part III). The taxpayer is not eligible for the credit and UltraTax CS does not calculate this amount.
Qualified person with no qualified expenses
When certain conditions are met, this field allows for the selection of a qualified person to appear on Form 2441, line 2 with no qualified expenses. A person selected in this field will appear on line 2 of Form 2441, if another qualifying person for Form 2441 is entered in the
Dependent information
 statement on the 1040 screen or the
Qualifying person information for nondependents
 statement on the Cr screen with more than $3,000 of qualifying expenses. See Form 2441 instructions or IRS Pub. 503 for further information.
Qualified persons will appear in this field under these conditions:
  • The person is entered in the
    Dependent information
     statement on the 1040 screen or the
    Qualifying person information for nondependents
     statement on the Cr screen, and
  • The
    2441 Expense
     column in the
    Dependent information
     statement on the 1040 screen is blank or the
    Qualified Expenses
     column in the
    Qualifying person information for nondependents
     statement on the Cr screen is blank, and
  • The person is under age 13, or
  • The person is over age 13 but considered disabled (code 2 or 3 in the
    Student/Disabled
     column of the
    Dependent information
     statement on the 1040 screen, or
    X
     is entered in the
    Mark if Disabled
     column of the
    Qualifying person information for nondependents
     statement on the Cr screen).
Dependent care benefits from a sole proprietorship
Enter the amount of dependent care benefits received from a sole proprietorship (Schedule C and/or F). Amounts entered here will transfer to Form 2441, line 12. If any of the dependent care benefits from a sole proprietorship are deductible on Form 2441, line 24, the amount of dependent care benefits to report on the applicable Schedule C or Schedule F activity will need to be manually calculated and entered in the applicable activity's input screen (C-2 or F-2 screens) for expenses.
Earned income for exclusion...
Earned income normally calculates based on information entered elsewhere in UltraTax CS. If the taxpayer and/or spouse was a full-time student or disabled at any time in 2023, you must manually enter the earned income in the appropriate field. In addition, if the filing status is married filing separately and the taxpayer is not considered unmarried for 2441 purposes, enter the spouse's earned income in this field.
note
UltraTax CS includes nontaxable combat pay in earned income for the exclusion. Use this field to force (override) earned income for the exclusion.
Earned income for credit...
Earned income normally calculates based on information entered elsewhere in UltraTax CS. If the taxpayer and/or spouse was a full-time student or disabled at any time in 2023, you must manually enter the earned income in the appropriate field.

Child Tax Credit & Credit for Other Dependents

Use this section to enter information needed for the Child Tax Credit and Credit for Other Dependents (Schedule 8812 – Credits for Qualifying Children and Other Dependents). UltraTax CS automatically determines if there are qualifying children in the return and marks the applicable boxes in the Dependents section of Form 1040 and calculates Scheule 8812, Credits for Qualifying Children and Other Dependents, which includes the Additional Child Tax Credit.
A custom paragraph may be included in the transmittal letter to notify the taxpayer if a child will no longer qualify for the child tax credit next year (thus potentially increasing tax liability), based on age requirements. To select this custom paragraph on a client basis, select custom paragraph
CTC Eligibility Expiration (TL)
 from one of the
Paragraph Description
 fieldviews in the Letter screen. To select this custom paragraph to print for all clients when applicable, choose Setup > 1040 Individual, select the Letters & Emails button in the Federal tab, select the Custom Paragraphs tab, and mark the
CTC Eligibility Expiration (TL)
 box.
note
To force the Child Tax Credit worksheets to print if they have data and whether or not it is required, choose Setup > 1040 Individual, select the Tax Return button, and select the tab for the collation (Government, Client, or Preparer) you want to modify. In the Focus group box, select the
Page that can be forced to print
 option. In the collation list, highlight Child Tax Credit Worksheet. In the Print conditions group box, select the
Always if data
 option. Click OK to close the Return Collation dialog, then select OK to close the Product Information dialog.
Qualifying children are defined by the IRS as any individual under age 18 with a valid SSN at the end of the 2023 tax year, for whom the taxpayer can claim a dependency exemption, and who is (a) the taxpayer's son, daughter, adopted child, stepchild, or grandchild; (b) the taxpayer's brother, sister, stepbrother, stepsister, or a descendant of the taxpayer's brother, sister, stepbrother, or stepsister (for example a niece or nephew) for whom the taxpayer cared for as their own child; or (c) an eligible foster child of the taxpayer. The child must also have a valid SSN issued prior to the due date of the return (including extensions).
A qualifying person for the credit for other dependents (ODC) must be claimed as a dependent on the return, cannot be used to claim the CTC or ACTC, and must be a U.S. citizen, U.S. national, or U.S. resident alien. In addition to being a qualifying person for the ODC, the person must have an SSN, ITIN, or ATIN issued on or before the due date of the return (including extensions). If the person has not been issued an SSN, ITIN, or ATIN by that date, they are not considered eligible for the ODC.
Not qualifying for child tax credit(s)
Enter
X
 to suppress the automatic application calculation of the child tax credit and Schedule 8812, Additional Child Tax Credit.
Not qualifying for credit for other dependents (ODC)
Enter
X
 to suppress the automatic application calculation of the credit for other dependents.
Adjustment to modified adjusted gross income
Enter the amount of the adjustment to the calculated modified adjusted gross income. A negative entry is treated as a subtraction.
  • Amount of Puerto Rico income excluded
     – Use this field to complete Schedule 8812, Credits for Qualifying Children and Other Dependents, line 2a.
  • Amount from Form 4563, Exclusion of Income Bona Fide Resident of American Samoa, line 15
     – Use this field to complete Schedule 8812, Credits for Qualifying Children and Other Dependents, line 2c.
Adjustment to taxable earned income
Enter the amount of the adjustment to the calculated taxable earned income on line 7 of the Child Tax Credit - Taxable Earned Income Worksheet. A negative entry is treated as a subtraction from taxable earned income.
note
For clergy returns, minister wages are subtracted from Schedule C income on line 2b of the Child Tax Credit - Taxable Earned Income Worksheet because they are included on line 1. The minister housing allowance is also subtracted (when applicable) because it is not considered earned income for purposes of calculating the child tax credit.
Total social security, Medicare, and Tier 1 taxes paid (Force)
Tier 1 tax withheld for railroad employees entered in the
Box 14
 field in the W2 screen for the child tax credit calculation are automatically included. If the railroad employee is an employee representative, enter 50 percent of the total Tier 1 tax and Tier 1 Medicare taxes paid in this field to override the calculated amount.
Bona fide resident of Puerto Rico for 2021 Taxpayer/Spouse
 – Use these fields to complete Schedule 8812, Credits for Qualifying Children and Other Dependents, line 13B.

Schedule R - Credit for the Elderly or Disabled

Statement permanent & total disability
Enter
X
 to indicate that the taxpayer or spouse is permanently and totally disabled. UltraTax CS uses this information in conjunction with the date of birth entered in the 1040 screen, General Information, to mark the appropriate boxes in Parts I and II of Schedule R.
Physician statement is required
Enter
X
 to indicate to the IRS that a physician statement has not been filed with a prior year income tax return. Marking this box will clear the box on Schedule R, Part II, when appropriate.
Nontaxable disability/pension...
Enter the total nontaxable pension, annuities, or disability income that the taxpayer and spouse received in the current year. The amount transfers to Schedule R, Part III, line 13b.
Taxable disability income
Enter the total taxable disability income for the taxpayer and spouse, if this amount was included as wages. This amount transfers to Schedule R, Part III, line 11.
If one spouse was 65 or older and the other spouse was under 65 but permanently and totally disabled, enter only the taxable income of the spouse who was under 65. Five thousand dollars is automatically added to the amount and transfers it to Schedule R, Part III, line 11.

Form 1116 — Foreign Tax Credit

Report all foreign tax on Schedule A
This selection is ignored when "Elect exemption from foreign tax credit limitation" is selected on the B&D screen. When both are selected, neither a deduction nor a credit is calculated.
Country of residence code/name
UltraTax CS automatically displays "US" in the
Resident of (name of country)
 country code field on Form 1116 (and also in the electronic file) if these fields and the
Foreign country code/name
 fields on the 1040 screen are blank.
Gross income from all sources (Force)
Use this field to override (force) the calculated amount reported in the
Gross income from all sources
 field on Form 1116, Page 1. The details of the calculated amount print in a supporting statement.
Pro rata share of: Itemized/standard deductions (Force)
Use this field to override (force) the calculated amount of itemized deductions. The Schedule A medical deductions, real estate taxes, personal property taxes and sales taxes are included automatically. You can enter
0
 (zero) in this field if no amount of deductions should appear.
Pro rata share of: Other deductions (Force)
The deductions for health savings account, penalty on early withdrawal of savings, alimony paid, IRA contributions, Archer MSA contributions, jury duty pay and student loan interest are included automatically. If other deductions not definitely related to a specific type of income needed to be included, add them to any amount already automatically included and enter all of the items in this statement.
note
Amounts and descriptions must be entered in the statement in order to generate the required statement for both paper and electronically-filed returns.
Pro rata share of: Home mortgage interest (Force)
Deductible home mortgage interest is apportioned automatically using a gross income method and the details print in a not required statement. If the foreign income does not exceed the $5,000 limit and the client wants to allocate all of the interest expense to the U.S. source income, enter
0
 (zero) in this field.
Foreign taxes claimed
The selection applies to the taxpayer's method of keeping books, and not the reporting entity. For example, a taxpayer may receive a K-1 with accrued foreign taxes but report them on Form 1116 as "paid." Once a taxpayer elects the accrual method, they must use that method for all categories of income for the current year and all future years.
Reduction of credit for boycott operations
The amount entered here is reported on Form 1116, page 2, Part IV, line 34, instead of on line 12. In the description column, enter the details for how the reduction was calculated. Per the Form 1116 instructions for line 12, this is to be figured by multiplying the credit otherwise allowable by the international boycott factor (calculated on Form 5713 Schedule A).
Elect to use exchange rate on date paid
This election, which allows you to use the exchange rate on the date paid rather than the average exchange rate, applies to accrued foreign taxes dominated in a foreign currency and prints automatically with the return (and is included in the electronic file).
note
Do not make this same election in the Elect screen in the Elections folder because it may cause duplicates to print.

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