U.S. · Form 2441 line 26
Form 2441 line 26 taxable benefits.
How much of your employer dependent care benefits is taxed.
Form 2441 line 26 is “Taxable benefits. Subtract line 25 from line 23. If zero or less, enter -0-.” Any amount is also entered on Form 1040, 1040-SR or 1040-NR line 1e. It is the part of your dependent care benefits that exceeds what you can exclude in Part III, which uses an annual maximum of $5,000 ($2,500 if married filing separately).
Work Part III lines 12 to 26
Result
Reference table
| Line | What it holds |
|---|---|
| Line 15 | Lines 12 to 14 combined. |
| Line 17 | The smaller of line 15 or line 16. |
| Line 20 | The smallest of line 17, 18 or 19; zero if less. |
| Line 23 | Line 15 minus line 22. |
| Line 24 | Deductible benefits: smallest of lines 20, 21 or 22. |
| Line 25 | Excluded benefits. |
| Line 26 | Taxable benefits: line 23 minus line 25, not below zero. |
What Part III does
If your employer provided dependent care benefits, Part III figures how much can be excluded from income and how much is taxable. Whatever you can exclude reduces the expenses available for the credit in Part II. Line 26 is what is left over and is taxed as wages.
The key lines
Line 15 combines lines 12, 13 and 14. Line 17 is the smaller of line 15 or your qualified expenses on line 16. Line 20 is the smallest of line 17 and each spouse’s earned income (lines 18 and 19). Line 21 is $5,000 for 2025 ($2,500 if married filing separately and you were required to enter your spouse’s earned income on line 19), or your plan’s lower maximum if less. Line 24 puts deductible benefits (from a sole proprietorship or partnership) on the matching Schedule C, E or F line. Line 25 covers excluded benefits: if line 22 is No, the smaller of line 20 or line 21. Line 26 is line 23 minus line 25.
Worked example
$7,500 of benefits, $8,000 of expenses, earned incomes of $60,000 and $45,000, and the $5,000 maximum with no sole proprietorship amount. Line 15 is $7,500, line 20 is $7,500, line 25 is the smaller of 20 or 21: $5,000, and line 26 is $7,500 − $5,000 = $2,500, entered on Form 1040 line 1e. All figures are illustrative.
Limits of this page
The page applies the printed lines only. It does not handle lines 27 to 31, which feed the credit. It also treats a line 22 amount of zero as the “No” answer. See the instructions for your own plan’s facts, including the grace period and carried-forward amounts.
Sources
- Instructions for Form 2441 (2025): Line-by-line instructions, worksheets and limits. Read November 2, 2026.
- Form 2441 (2025): The form itself, for exact line wording. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is line 26 on Form 2441?
Taxable benefits: line 23 minus line 25, not below zero. Any amount goes on Form 1040, 1040-SR or 1040-NR line 1e.
What is the exclusion maximum?
For 2025 the maximum excludable through a dependent care assistance program is $5,000 ($2,500 if married filing separately), or less if your plan sets a lower limit.
Do I complete Part III for every filer?
Only if you received dependent care benefits; the form says to complete Part III next if you answered Yes.
What happens to line 26 amounts?
They are added to income on line 1e of your Form 1040, 1040-SR or 1040-NR.
Which tax year is this?
The 2025 edition of Form 2441 and its instructions.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.