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An indepentdent federal body, the Coordinating Council on Juvenile Justice and Delinquency Prevention coordinates, studies the effectiveness of, and makes recommendations on juvenile crime prevention activities.

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The 2010 Taxes Cheap 1099 G Form W 2

2010 taxes cheap 1099 g form w 2 32. 2010 taxes cheap 1099 g form w 2   Child and Dependent Care Credit Table of Contents Reminders Introduction Useful Items - You may want to see: Tests To Claim the CreditQualifying Person Test Earned Income Test Work-Related Expense Test Joint Return Test Provider Identification Test How To Figure the CreditFiguring Total Work-Related Expenses Earned Income Limit Dollar Limit Amount of Credit How To Claim the CreditTax credit not refundable. 2010 taxes cheap 1099 g form w 2 Employment Taxes for Household Employers Reminders Taxpayer identification number needed for each qualifying person. 2010 taxes cheap 1099 g form w 2  You must include on line 2 of Form 2441 the name and taxpayer identification number (generally the social security number) of each qualifying person. 2010 taxes cheap 1099 g form w 2 See Taxpayer identification number under Qualifying Person Test, later. 2010 taxes cheap 1099 g form w 2 You may have to pay employment taxes. 2010 taxes cheap 1099 g form w 2  If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer who has to pay employment taxes. 2010 taxes cheap 1099 g form w 2 Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. 2010 taxes cheap 1099 g form w 2 See Employment Taxes for Household Employers , later. 2010 taxes cheap 1099 g form w 2 Introduction This chapter discusses the credit for child and dependent care expenses and covers the following topics. 2010 taxes cheap 1099 g form w 2 Tests you must meet to claim the credit. 2010 taxes cheap 1099 g form w 2 How to figure the credit. 2010 taxes cheap 1099 g form w 2 How to claim the credit. 2010 taxes cheap 1099 g form w 2 Employment taxes you may have to pay as a household employer. 2010 taxes cheap 1099 g form w 2 You may be able to claim the credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. 2010 taxes cheap 1099 g form w 2 The credit can be up to 35% of your expenses. 2010 taxes cheap 1099 g form w 2 To qualify, you must pay these expenses so you can work or look for work. 2010 taxes cheap 1099 g form w 2 This credit should not be confused with the child tax credit discussed in chapter 34. 2010 taxes cheap 1099 g form w 2 Dependent care benefits. 2010 taxes cheap 1099 g form w 2   If you received any dependent care benefits from your employer during the year, you may be able to exclude from your income all or part of them. 2010 taxes cheap 1099 g form w 2 You must complete Form 2441, Part III, before you can figure the amount of your credit. 2010 taxes cheap 1099 g form w 2 See Dependent Care Benefits under How To Figure the Credit, later. 2010 taxes cheap 1099 g form w 2 Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 503 Child and Dependent Care Expenses 926 Household Employer's Tax Guide Form (and Instructions) 2441 Child and Dependent Care Expenses Schedule H (Form 1040) Household Employment Taxes W-7 Application for IRS Individual Taxpayer Identification Number W-10 Dependent Care Provider's Identification and Certification Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040 or Form 1040A, not Form 1040EZ, and meet all the following tests. 2010 taxes cheap 1099 g form w 2 The care must be for one or more qualifying persons who are identified on Form 2441. 2010 taxes cheap 1099 g form w 2 (See Qualifying Person Test . 2010 taxes cheap 1099 g form w 2 ) You (and your spouse if filing jointly) must have earned income during the year. 2010 taxes cheap 1099 g form w 2 (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. 2010 taxes cheap 1099 g form w 2 ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. 2010 taxes cheap 1099 g form w 2 (See Work-Related Expense Test , later. 2010 taxes cheap 1099 g form w 2 ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. 2010 taxes cheap 1099 g form w 2 If you make payments to your child, he or she cannot be your dependent and must be age 19 or older by the end of the year. 2010 taxes cheap 1099 g form w 2 You cannot make payments to: Your spouse, or The parent of your qualifying person if your qualifying person is your child and under age 13. 2010 taxes cheap 1099 g form w 2 (See Payments to Relatives or Dependents under Work-Related Expense Test, later. 2010 taxes cheap 1099 g form w 2 ) Your filing status may be single, head of household, or qualifying widow(er) with dependent child. 2010 taxes cheap 1099 g form w 2 If you are married, you must file a joint return, unless an exception applies to you. 2010 taxes cheap 1099 g form w 2 (See Joint Return Test , later. 2010 taxes cheap 1099 g form w 2 ) You must identify the care provider on your tax return. 2010 taxes cheap 1099 g form w 2 (See Provider Identification Test , later. 2010 taxes cheap 1099 g form w 2 ) If you exclude or deduct dependent care benefits provided by a dependent care benefits plan, the total amount you exclude or deduct must be less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for). 2010 taxes cheap 1099 g form w 2 (If two or more qualifying persons were cared for, the amount you exclude or deduct will always be less than the dollar limit, since the total amount you can exclude or deduct is limited to $5,000. 2010 taxes cheap 1099 g form w 2 See Reduced Dollar Limit under How To Figure the Credit, later. 2010 taxes cheap 1099 g form w 2 ) These tests are presented in Figure 32-A and are also explained in detail in this chapter. 2010 taxes cheap 1099 g form w 2 Figure 32-A. 2010 taxes cheap 1099 g form w 2 Can You Claim the Credit? Please click here for the text description of the image. 2010 taxes cheap 1099 g form w 2 Figure 32-A Can You Claim the Credit? Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. 2010 taxes cheap 1099 g form w 2 A qualifying person is: Your qualifying child who is your dependent and who was under age 13 when the care was provided (but see Child of divorced or separated parents or parents living apart, later), Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. 2010 taxes cheap 1099 g form w 2 Dependent defined. 2010 taxes cheap 1099 g form w 2   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. 2010 taxes cheap 1099 g form w 2 To be your dependent, a person must be your qualifying child (or your qualifying relative). 2010 taxes cheap 1099 g form w 2 Qualifying child. 2010 taxes cheap 1099 g form w 2   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. 2010 taxes cheap 1099 g form w 2 More information. 2010 taxes cheap 1099 g form w 2   For more information about who is a dependent or a qualifying child, see chapter 3. 2010 taxes cheap 1099 g form w 2 Physically or mentally not able to care for oneself. 2010 taxes cheap 1099 g form w 2   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. 2010 taxes cheap 1099 g form w 2 Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. 2010 taxes cheap 1099 g form w 2 Person qualifying for part of year. 2010 taxes cheap 1099 g form w 2   You determine a person's qualifying status each day. 2010 taxes cheap 1099 g form w 2 For example, if the person for whom you pay child and dependent care expenses no longer qualifies on September 16, count only those expenses through September 15. 2010 taxes cheap 1099 g form w 2 Also see Yearly limit under Dollar Limit, later. 2010 taxes cheap 1099 g form w 2 Birth or death of otherwise qualifying person. 2010 taxes cheap 1099 g form w 2   In determining whether a person is a qualifying person, a person who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the person's home for more than half the time he or she was alive in 2013. 2010 taxes cheap 1099 g form w 2 Taxpayer identification number. 2010 taxes cheap 1099 g form w 2   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). 2010 taxes cheap 1099 g form w 2 If the correct information is not shown, the credit may be reduced or disallowed. 2010 taxes cheap 1099 g form w 2 Individual taxpayer identification number (ITIN) for aliens. 2010 taxes cheap 1099 g form w 2   If your qualifying person is a nonresident or resident alien who does not have and cannot get a social security number (SSN), use that person's ITIN. 2010 taxes cheap 1099 g form w 2 The ITIN is entered wherever an SSN is requested on a tax return. 2010 taxes cheap 1099 g form w 2 To apply for an ITIN, see Form W-7. 2010 taxes cheap 1099 g form w 2   An ITIN is for tax use only. 2010 taxes cheap 1099 g form w 2 It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. 2010 taxes cheap 1099 g form w 2 S. 2010 taxes cheap 1099 g form w 2 law. 2010 taxes cheap 1099 g form w 2 Adoption taxpayer identification number (ATIN). 2010 taxes cheap 1099 g form w 2   If your qualifying person is a child who was placed in your home for adoption and for whom you do not have an SSN, you must get an ATIN for the child. 2010 taxes cheap 1099 g form w 2 File Form W-7A, Application for Taxpayer Identification Number for Pending U. 2010 taxes cheap 1099 g form w 2 S. 2010 taxes cheap 1099 g form w 2 Adoptions. 2010 taxes cheap 1099 g form w 2 Child of divorced or separated parents or parents living apart. 2010 taxes cheap 1099 g form w 2   Even if you cannot claim your child as a dependent, he or she is treated as your qualifying person if: The child was under age 13 or was not physically or mentally able to care for himself or herself, The child received over half of his or her support during the calendar year from one or both parents who are divorced or legally separated under a decree of divorce or separate maintenance, are separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year, The child was in the custody of one or both parents for more than half the year, and You were the child's custodial parent. 2010 taxes cheap 1099 g form w 2   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. 2010 taxes cheap 1099 g form w 2 If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. 2010 taxes cheap 1099 g form w 2 For details and an exception for a parent who works at night, see Pub. 2010 taxes cheap 1099 g form w 2 501. 2010 taxes cheap 1099 g form w 2   The noncustodial parent cannot treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents. 2010 taxes cheap 1099 g form w 2 Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. 2010 taxes cheap 1099 g form w 2 Earned income. 2010 taxes cheap 1099 g form w 2   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. 2010 taxes cheap 1099 g form w 2 A net loss from self-employment reduces earned income. 2010 taxes cheap 1099 g form w 2 Earned income also includes strike benefits and any disability pay you report as wages. 2010 taxes cheap 1099 g form w 2   Generally, only taxable compensation is included. 2010 taxes cheap 1099 g form w 2 However, you can elect to include nontaxable combat pay in earned income. 2010 taxes cheap 1099 g form w 2 If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. 2010 taxes cheap 1099 g form w 2 (In other words, if one of you makes the election, the other one can also make it but does not have to. 2010 taxes cheap 1099 g form w 2 ) You should figure your credit both ways and make the election if it gives you a greater tax benefit. 2010 taxes cheap 1099 g form w 2 Members of certain religious faiths opposed to social security. 2010 taxes cheap 1099 g form w 2   Certain income earned by persons who are members of certain religious faiths that are opposed to participation in Social Security Act programs and have an IRS-approved form that exempts certain income from social security and Medicare taxes may not be considered earned income for this purpose. 2010 taxes cheap 1099 g form w 2 See Earned Income Test in Publication 503. 2010 taxes cheap 1099 g form w 2 Not earned income. 2010 taxes cheap 1099 g form w 2   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarship or fellowship grants, except for those reported on a Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received by you, Income of nonresident aliens that is not effectively connected with a U. 2010 taxes cheap 1099 g form w 2 S. 2010 taxes cheap 1099 g form w 2 trade or business, or Any amount received for work while an inmate in a penal institution. 2010 taxes cheap 1099 g form w 2 Rule for student-spouse or spouse not able to care for self. 2010 taxes cheap 1099 g form w 2   Your spouse is treated as having earned income for any month that he or she is: A full-time student, or Physically or mentally not able to care for himself or herself. 2010 taxes cheap 1099 g form w 2 (Your spouse also must live with you for more than half the year. 2010 taxes cheap 1099 g form w 2 )   If you are filing a joint return, this rule also applies to you. 2010 taxes cheap 1099 g form w 2 You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. 2010 taxes cheap 1099 g form w 2   Figure the earned income of the nonworking spouse described under (1) or (2) above as explained under Earned Income Limit , later. 2010 taxes cheap 1099 g form w 2   This rule applies to only one spouse for any one month. 2010 taxes cheap 1099 g form w 2 If, in the same month, both you and your spouse do not work and are either full-time students or not physically or mentally able to care for yourselves, only one of you can be treated as having earned income in that month. 2010 taxes cheap 1099 g form w 2 Full-time student. 2010 taxes cheap 1099 g form w 2   You are a full-time student if you are enrolled at a school for the number of hours or classes that the school considers full time. 2010 taxes cheap 1099 g form w 2 You must have been a full-time student for some part of each of 5 calendar months during the year. 2010 taxes cheap 1099 g form w 2 (The months need not be consecutive. 2010 taxes cheap 1099 g form w 2 ) School. 2010 taxes cheap 1099 g form w 2   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. 2010 taxes cheap 1099 g form w 2 A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. 2010 taxes cheap 1099 g form w 2 Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. 2010 taxes cheap 1099 g form w 2 Expenses are considered work-related only if both of the following are true. 2010 taxes cheap 1099 g form w 2 They allow you (and your spouse if filing jointly) to work or look for work. 2010 taxes cheap 1099 g form w 2 They are for a qualifying person's care. 2010 taxes cheap 1099 g form w 2 Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. 2010 taxes cheap 1099 g form w 2 If you are married, generally both you and your spouse must work or look for work. 2010 taxes cheap 1099 g form w 2 One spouse is treated as working during any month he or she is a full-time student or is not physically or mentally able to care for himself or herself. 2010 taxes cheap 1099 g form w 2 Your work can be for others or in your own business or partnership. 2010 taxes cheap 1099 g form w 2 It can be either full time or part time. 2010 taxes cheap 1099 g form w 2 Work also includes actively looking for work. 2010 taxes cheap 1099 g form w 2 However, if you do not find a job and have no earned income for the year, you cannot take this credit. 2010 taxes cheap 1099 g form w 2 See Earned Income Test , earlier. 2010 taxes cheap 1099 g form w 2 An expense is not considered work-related merely because you had it while you were working. 2010 taxes cheap 1099 g form w 2 The purpose of the expense must be to allow you to work. 2010 taxes cheap 1099 g form w 2 Whether your expenses allow you to work or look for work depends on the facts. 2010 taxes cheap 1099 g form w 2 Example 1. 2010 taxes cheap 1099 g form w 2 The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. 2010 taxes cheap 1099 g form w 2 Example 2. 2010 taxes cheap 1099 g form w 2 You work during the day. 2010 taxes cheap 1099 g form w 2 Your spouse works at night and sleeps during the day. 2010 taxes cheap 1099 g form w 2 You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. 2010 taxes cheap 1099 g form w 2 Your expenses are considered work-related. 2010 taxes cheap 1099 g form w 2 Volunteer work. 2010 taxes cheap 1099 g form w 2    For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. 2010 taxes cheap 1099 g form w 2 Work for part of year. 2010 taxes cheap 1099 g form w 2   If you work or actively look for work during only part of the period covered by the expenses, then you must figure your expenses for each day. 2010 taxes cheap 1099 g form w 2 For example, if you work all year and pay care expenses of $250 a month ($3,000 for the year), all the expenses are work-related. 2010 taxes cheap 1099 g form w 2 However, if you work or look for work for only 2 months and 15 days during the year and pay expenses of $250 a month, your work-related expenses are limited to $625 (2½ months × $250). 2010 taxes cheap 1099 g form w 2 Temporary absence from work. 2010 taxes cheap 1099 g form w 2   You do not have to figure your expenses for each day during a short, temporary absence from work, such as for vacation or a minor illness, if you have to pay for care anyway. 2010 taxes cheap 1099 g form w 2 Instead, you can figure your credit including the expenses you paid for the period of absence. 2010 taxes cheap 1099 g form w 2   An absence of 2 weeks or less is a short, temporary absence. 2010 taxes cheap 1099 g form w 2 An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. 2010 taxes cheap 1099 g form w 2 Example. 2010 taxes cheap 1099 g form w 2 You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. 2010 taxes cheap 1099 g form w 2 You become ill and miss 4 months of work but receive sick pay. 2010 taxes cheap 1099 g form w 2 You continue to pay the nanny to care for the children while you are ill. 2010 taxes cheap 1099 g form w 2 Your absence is not a short, temporary absence, and your expenses are not considered work-related. 2010 taxes cheap 1099 g form w 2 Part-time work. 2010 taxes cheap 1099 g form w 2   If you work part-time, you generally must figure your expenses for each day. 2010 taxes cheap 1099 g form w 2 However, if you have to pay for care weekly, monthly, or in another way that includes both days worked and days not worked, you can figure your credit including the expenses you paid for days you did not work. 2010 taxes cheap 1099 g form w 2 Any day when you work at least 1 hour is a day of work. 2010 taxes cheap 1099 g form w 2 Example 1. 2010 taxes cheap 1099 g form w 2 You work 3 days a week. 2010 taxes cheap 1099 g form w 2 While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. 2010 taxes cheap 1099 g form w 2 You can pay the center $150 for any 3 days a week or $250 for 5 days a week. 2010 taxes cheap 1099 g form w 2 Your child attends the center 5 days a week. 2010 taxes cheap 1099 g form w 2 Your work-related expenses are limited to $150 a week. 2010 taxes cheap 1099 g form w 2 Example 2. 2010 taxes cheap 1099 g form w 2 The facts are the same as in Example 1 except the center does not offer a 3-day option. 2010 taxes cheap 1099 g form w 2 The entire $250 weekly fee may be a work-related expense. 2010 taxes cheap 1099 g form w 2 Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. 2010 taxes cheap 1099 g form w 2 You do not have to choose the least expensive way of providing care. 2010 taxes cheap 1099 g form w 2 The cost of a paid care provider may be an expense for the care of a qualifying person even if another care provider is available at no cost. 2010 taxes cheap 1099 g form w 2 Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. 2010 taxes cheap 1099 g form w 2 Expenses for household services qualify if part of the services is for the care of qualifying persons. 2010 taxes cheap 1099 g form w 2 See Household services , later. 2010 taxes cheap 1099 g form w 2 Expenses not for care. 2010 taxes cheap 1099 g form w 2   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. 2010 taxes cheap 1099 g form w 2 However, you can include small amounts paid for these items if they are incidental to and cannot be separated from the cost of caring for the qualifying person. 2010 taxes cheap 1099 g form w 2   Child support payments are not for care and do not qualify for the credit. 2010 taxes cheap 1099 g form w 2 Education. 2010 taxes cheap 1099 g form w 2   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. 2010 taxes cheap 1099 g form w 2 Expenses to attend kindergarten or a higher grade are not expenses for care. 2010 taxes cheap 1099 g form w 2 Do not use these expenses to figure your credit. 2010 taxes cheap 1099 g form w 2   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. 2010 taxes cheap 1099 g form w 2   Summer school and tutoring programs are not for care. 2010 taxes cheap 1099 g form w 2 Example 1. 2010 taxes cheap 1099 g form w 2 You take your 3-year-old child to a nursery school that provides lunch and educational activities as a part of its preschool childcare service. 2010 taxes cheap 1099 g form w 2 The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. 2010 taxes cheap 1099 g form w 2 You can count the total cost when you figure the credit. 2010 taxes cheap 1099 g form w 2 Example 2. 2010 taxes cheap 1099 g form w 2 You place your 10-year-old child in a boarding school so you can work full time. 2010 taxes cheap 1099 g form w 2 Only the part of the boarding school expense that is for the care of your child is a work-related expense. 2010 taxes cheap 1099 g form w 2 You can count that part of the expense in figuring your credit if it can be separated from the cost of education. 2010 taxes cheap 1099 g form w 2 You cannot count any part of the amount you pay the school for your child's education. 2010 taxes cheap 1099 g form w 2 Care outside your home. 2010 taxes cheap 1099 g form w 2   You can count the cost of care provided outside your home if the care is for your dependent under age 13 or any other qualifying person who regularly spends at least 8 hours each day in your home. 2010 taxes cheap 1099 g form w 2 Dependent care center. 2010 taxes cheap 1099 g form w 2   You can count care provided outside your home by a dependent care center only if the center complies with all state and local regulations that apply to these centers. 2010 taxes cheap 1099 g form w 2   A dependent care center is a place that provides care for more than six persons (other than persons who live there) and receives a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit. 2010 taxes cheap 1099 g form w 2 Camp. 2010 taxes cheap 1099 g form w 2   The cost of sending your child to an overnight camp is not considered a work-related expense. 2010 taxes cheap 1099 g form w 2 The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer. 2010 taxes cheap 1099 g form w 2 Transportation. 2010 taxes cheap 1099 g form w 2   If a care provider takes a qualifying person to or from a place where care is provided, that transportation is for the care of the qualifying person. 2010 taxes cheap 1099 g form w 2 This includes transportation by bus, subway, taxi, or private car. 2010 taxes cheap 1099 g form w 2 However, transportation not provided by a care provider is not for the care of a qualifying person. 2010 taxes cheap 1099 g form w 2 Also, if you pay the transportation cost for the care provider to come to your home, that expense is not for care of a qualifying person. 2010 taxes cheap 1099 g form w 2 Fees and deposits. 2010 taxes cheap 1099 g form w 2   Fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they are not directly for care. 2010 taxes cheap 1099 g form w 2 However, a forfeited deposit is not for the care of a qualifying person if care is not provided. 2010 taxes cheap 1099 g form w 2 Example 1. 2010 taxes cheap 1099 g form w 2 You paid a fee to an agency to get the services of the nanny who cares for your 2-year-old daughter while you work. 2010 taxes cheap 1099 g form w 2 The fee you paid is a work-related expense. 2010 taxes cheap 1099 g form w 2 Example 2. 2010 taxes cheap 1099 g form w 2 You placed a deposit with a preschool to reserve a place for your 3-year-old child. 2010 taxes cheap 1099 g form w 2 You later sent your child to a different preschool and forfeited the deposit. 2010 taxes cheap 1099 g form w 2 The forfeited deposit is not for care and so is not a work-related expense. 2010 taxes cheap 1099 g form w 2 Household services. 2010 taxes cheap 1099 g form w 2   Expenses you pay for household services meet the work-related expense test if they are at least partly for the well-being and protection of a qualifying person. 2010 taxes cheap 1099 g form w 2   Household services are ordinary and usual services done in and around your home that are necessary to run your home. 2010 taxes cheap 1099 g form w 2 They include the services of a housekeeper, maid, or cook. 2010 taxes cheap 1099 g form w 2 However, they do not include the services of a chauffeur, bartender, or gardener. 2010 taxes cheap 1099 g form w 2 See Household Services in Publication 503 for more information. 2010 taxes cheap 1099 g form w 2   In this chapter, the term housekeeper refers to any household employee whose services include the care of a qualifying person. 2010 taxes cheap 1099 g form w 2 Taxes paid on wages. 2010 taxes cheap 1099 g form w 2   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. 2010 taxes cheap 1099 g form w 2 See Employment Taxes for Household Employers , later. 2010 taxes cheap 1099 g form w 2 Payments to Relatives or Dependents You can count work-related payments you make to relatives who are not your dependents, even if they live in your home. 2010 taxes cheap 1099 g form w 2 However, do not count any amounts you pay to: A dependent for whom you (or your spouse if filing jointly) can claim an exemption, Your child who was under age 19 at the end of the year, even if he or she is not your dependent, A person who was your spouse any time during the year, or The parent of your qualifying person if your qualifying person is your child and under age 13. 2010 taxes cheap 1099 g form w 2 Joint Return Test Generally, married couples must file a joint return to take the credit. 2010 taxes cheap 1099 g form w 2 However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. 2010 taxes cheap 1099 g form w 2 Legally separated. 2010 taxes cheap 1099 g form w 2   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. 2010 taxes cheap 1099 g form w 2 You may be eligible to take the credit on your return using head of household filing status. 2010 taxes cheap 1099 g form w 2 Married and living apart. 2010 taxes cheap 1099 g form w 2   You are not considered married and are eligible to take the credit if all the following apply. 2010 taxes cheap 1099 g form w 2 You file a return apart from your spouse. 2010 taxes cheap 1099 g form w 2 Your home is the home of a qualifying person for more than half the year. 2010 taxes cheap 1099 g form w 2 You pay more than half the cost of keeping up your home for the year. 2010 taxes cheap 1099 g form w 2 Your spouse does not live in your home for the last 6 months of the year. 2010 taxes cheap 1099 g form w 2 Costs of keeping up a home. 2010 taxes cheap 1099 g form w 2   The costs of keeping up a home normally include property taxes, mortgage interest, rent, utility charges, home repairs, insurance on the home, and food eaten at home. 2010 taxes cheap 1099 g form w 2   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. 2010 taxes cheap 1099 g form w 2   They also do not include the purchase, permanent improvement, or replacement of property. 2010 taxes cheap 1099 g form w 2 For example, you cannot include the cost of replacing a water heater. 2010 taxes cheap 1099 g form w 2 However, you can include the cost of repairing a water heater. 2010 taxes cheap 1099 g form w 2 Death of spouse. 2010 taxes cheap 1099 g form w 2   If your spouse died during the year and you do not remarry before the end of the year, you generally must file a joint return to take the credit. 2010 taxes cheap 1099 g form w 2 If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's return. 2010 taxes cheap 1099 g form w 2 Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. 2010 taxes cheap 1099 g form w 2 Use Form 2441, Part I, to show the information. 2010 taxes cheap 1099 g form w 2 If you do not have any care providers and you are filing Form 2441 only to report taxable income in Part III, enter “none” in line 1, column (a). 2010 taxes cheap 1099 g form w 2 Information needed. 2010 taxes cheap 1099 g form w 2   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. 2010 taxes cheap 1099 g form w 2   If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. 2010 taxes cheap 1099 g form w 2 If the care provider is an organization, then it is the employer identification number (EIN). 2010 taxes cheap 1099 g form w 2   You do not have to show the taxpayer identification number if the care provider is a tax-exempt organization (such as a church or school). 2010 taxes cheap 1099 g form w 2 In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. 2010 taxes cheap 1099 g form w 2   If you cannot provide all of the information or if the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. 2010 taxes cheap 1099 g form w 2 Getting the information. 2010 taxes cheap 1099 g form w 2   You can use Form W-10 to request the required information from the care provider. 2010 taxes cheap 1099 g form w 2 If you do not use Form W-10, you can get the information from one of the other sources listed in the instructions for Form W-10 including: A copy of the provider's social security card, A copy of the provider's completed Form W-4 if he or she is your household employee, A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or A letter or invoice from the provider if it shows the information. 2010 taxes cheap 1099 g form w 2    You should keep this information with your tax records. 2010 taxes cheap 1099 g form w 2 Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. 2010 taxes cheap 1099 g form w 2 Due diligence. 2010 taxes cheap 1099 g form w 2   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. 2010 taxes cheap 1099 g form w 2 However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. 2010 taxes cheap 1099 g form w 2   You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of information just listed. 2010 taxes cheap 1099 g form w 2 Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. 2010 taxes cheap 1099 g form w 2 Provider refusal. 2010 taxes cheap 1099 g form w 2   If the provider refuses to give you their identifying information, you should report on Form 2441 whatever information you have (such as the name and address). 2010 taxes cheap 1099 g form w 2 Enter “See Attached Statement” in the columns calling for the information you do not have. 2010 taxes cheap 1099 g form w 2 Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. 2010 taxes cheap 1099 g form w 2 Be sure to write your name and social security number on this statement. 2010 taxes cheap 1099 g form w 2 The statement will show that you used due diligence in trying to furnish the necessary information. 2010 taxes cheap 1099 g form w 2 U. 2010 taxes cheap 1099 g form w 2 S. 2010 taxes cheap 1099 g form w 2 citizens and resident aliens living abroad. 2010 taxes cheap 1099 g form w 2   If you are living abroad, your care provider may not have, and may not be required to get, a U. 2010 taxes cheap 1099 g form w 2 S. 2010 taxes cheap 1099 g form w 2 taxpayer identification number (for example, an SSN or EIN). 2010 taxes cheap 1099 g form w 2 If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. 2010 taxes cheap 1099 g form w 2 How To Figure the Credit Your credit is a percentage of your work-related expenses. 2010 taxes cheap 1099 g form w 2 Your expenses are subject to the earned income limit and the dollar limit. 2010 taxes cheap 1099 g form w 2 The percentage is based on your adjusted gross income. 2010 taxes cheap 1099 g form w 2 Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. 2010 taxes cheap 1099 g form w 2 Expenses prepaid in an earlier year. 2010 taxes cheap 1099 g form w 2   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. 2010 taxes cheap 1099 g form w 2 Claim the expenses for the later year as if they were actually paid in that later year. 2010 taxes cheap 1099 g form w 2 Expenses not paid until the following year. 2010 taxes cheap 1099 g form w 2   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. 2010 taxes cheap 1099 g form w 2 You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. 2010 taxes cheap 1099 g form w 2 See Payments for prior year's expenses under Amount of Credit in Publication 503. 2010 taxes cheap 1099 g form w 2    If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. 2010 taxes cheap 1099 g form w 2 You may be able to claim a credit for them on your 2014 return. 2010 taxes cheap 1099 g form w 2 Expenses reimbursed. 2010 taxes cheap 1099 g form w 2   If a state social services agency pays you a nontaxable amount to reimburse you for some of your child and dependent care expenses, you cannot count the expenses that are reimbursed as work-related expenses. 2010 taxes cheap 1099 g form w 2 Example. 2010 taxes cheap 1099 g form w 2 You paid work-related expenses of $3,000. 2010 taxes cheap 1099 g form w 2 You are reimbursed $2,000 by a state social services agency. 2010 taxes cheap 1099 g form w 2 You can use only $1,000 to figure your credit. 2010 taxes cheap 1099 g form w 2 Medical expenses. 2010 taxes cheap 1099 g form w 2   Some expenses for the care of qualifying persons who are not able to care for themselves may qualify as work-related expenses and also as medical expenses. 2010 taxes cheap 1099 g form w 2 You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. 2010 taxes cheap 1099 g form w 2   If you use these expenses to figure the credit and they are more than the earned income limit or the dollar limit, discussed later, you can add the excess to your medical expenses. 2010 taxes cheap 1099 g form w 2 However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. 2010 taxes cheap 1099 g form w 2    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. 2010 taxes cheap 1099 g form w 2 Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. 2010 taxes cheap 1099 g form w 2 See Reduced Dollar Limit , later. 2010 taxes cheap 1099 g form w 2 But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. 2010 taxes cheap 1099 g form w 2 Dependent care benefits. 2010 taxes cheap 1099 g form w 2   Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person while you work, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. 2010 taxes cheap 1099 g form w 2 Your salary may have been reduced to pay for these benefits. 2010 taxes cheap 1099 g form w 2 If you received benefits as an employee, they should be shown in box 10 of your Form W-2. 2010 taxes cheap 1099 g form w 2 See Statement for employee , later. 2010 taxes cheap 1099 g form w 2 Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. 2010 taxes cheap 1099 g form w 2 Enter the amount of these benefits on Form 2441, Part III, line 12. 2010 taxes cheap 1099 g form w 2 Exclusion or deduction. 2010 taxes cheap 1099 g form w 2   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. 2010 taxes cheap 1099 g form w 2 Your employer can tell you whether your benefit plan qualifies. 2010 taxes cheap 1099 g form w 2 To claim the exclusion, you must complete Part III of Form 2441. 2010 taxes cheap 1099 g form w 2 You cannot use Form 1040EZ. 2010 taxes cheap 1099 g form w 2   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. 2010 taxes cheap 1099 g form w 2 Therefore, you would not get an exclusion from wages. 2010 taxes cheap 1099 g form w 2 Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. 2010 taxes cheap 1099 g form w 2 To claim the deduction, you must use Form 2441. 2010 taxes cheap 1099 g form w 2   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). 2010 taxes cheap 1099 g form w 2 The definition of earned income for the exclusion or deduction is the same as the definition used when figuring the credit except that earned income for the exclusion or deduction does not include any dependent care benefits you receive. 2010 taxes cheap 1099 g form w 2 See Earned Income Limit, later. 2010 taxes cheap 1099 g form w 2    You can choose to include your nontaxable combat pay in earned income when figuring your exclusion or deduction, even if you choose not to include it in earned income for the earned income credit or the credit for child and dependent care expenses. 2010 taxes cheap 1099 g form w 2 Statement for employee. 2010 taxes cheap 1099 g form w 2   Your employer must give you a Form W-2 (or similar statement) showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. 2010 taxes cheap 1099 g form w 2 Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. 2010 taxes cheap 1099 g form w 2 Effect of exclusion on credit. 2010 taxes cheap 1099 g form w 2   If you exclude dependent care benefits from your income, the amount of the excluded benefits: Is not included in your work-related expenses, and Reduces the dollar limit, discussed later. 2010 taxes cheap 1099 g form w 2 Earned Income Limit The amount of work-related expenses you use to figure your credit cannot be more than: Your earned income for the year if you are single at the end of the year, or The smaller of your or your spouse's earned income for the year if you are married at the end of the year. 2010 taxes cheap 1099 g form w 2 Earned income is defined under Earned Income Test , earlier. 2010 taxes cheap 1099 g form w 2 For purposes of item (2), use your spouse's earned income for the entire year, even if you were married for only part of the year. 2010 taxes cheap 1099 g form w 2 Separated spouse. 2010 taxes cheap 1099 g form w 2   If you are legally separated or married and living apart from your spouse (as described under Joint Return Test , earlier), you are not considered married for purposes of the earned income limit. 2010 taxes cheap 1099 g form w 2 Use only your income in figuring the earned income limit. 2010 taxes cheap 1099 g form w 2 Surviving spouse. 2010 taxes cheap 1099 g form w 2   If your spouse died during the year and you file a joint return as a surviving spouse, you may, but are not required to, take into account the earned income of your spouse who died during the year. 2010 taxes cheap 1099 g form w 2 Community property laws. 2010 taxes cheap 1099 g form w 2   You should disregard community property laws when you figure earned income for this credit. 2010 taxes cheap 1099 g form w 2 You or your spouse is a student or not able to care for self. 2010 taxes cheap 1099 g form w 2   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. 2010 taxes cheap 1099 g form w 2 His or her earned income for each month is considered to be at least $250 if there is one qualifying person in your home, or at least $500 if there are two or more. 2010 taxes cheap 1099 g form w 2 Spouse works. 2010 taxes cheap 1099 g form w 2   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. 2010 taxes cheap 1099 g form w 2 Spouse qualifies for part of month. 2010 taxes cheap 1099 g form w 2    If your spouse is a full-time student or not able to care for himself or herself for only part of a month, the full $250 (or $500) still applies for that month. 2010 taxes cheap 1099 g form w 2 You are a student or not able to care for self. 2010 taxes cheap 1099 g form w 2   These rules also apply if you are a student or not able to care for yourself and you are filing a joint return. 2010 taxes cheap 1099 g form w 2 For each month or part of a month you are a student or not able to care for yourself, your earned income is considered to be at least $250 (or $500). 2010 taxes cheap 1099 g form w 2 If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. 2010 taxes cheap 1099 g form w 2 Both spouses qualify. 2010 taxes cheap 1099 g form w 2   If, in the same month, both you and your spouse are either full-time students or not able to care for yourselves, only one spouse can be considered to have this earned income of $250 (or $500) for that month. 2010 taxes cheap 1099 g form w 2 Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. 2010 taxes cheap 1099 g form w 2 This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. 2010 taxes cheap 1099 g form w 2 If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. 2010 taxes cheap 1099 g form w 2 This $6,000 limit does not need to be divided equally among them. 2010 taxes cheap 1099 g form w 2 For example, if your work-related expenses for the care of one qualifying person are $3,200 and your work-related expenses for another qualifying person are $2,800, you can use the total, $6,000, when figuring the credit. 2010 taxes cheap 1099 g form w 2 Yearly limit. 2010 taxes cheap 1099 g form w 2   The dollar limit is a yearly limit. 2010 taxes cheap 1099 g form w 2 The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. 2010 taxes cheap 1099 g form w 2 Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. 2010 taxes cheap 1099 g form w 2 Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. 2010 taxes cheap 1099 g form w 2 Reduced Dollar Limit If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you. 2010 taxes cheap 1099 g form w 2 Your reduced dollar limit is figured on Form 2441, Part III. 2010 taxes cheap 1099 g form w 2 See Dependent Care Benefits , earlier, for information on excluding or deducting these benefits. 2010 taxes cheap 1099 g form w 2 Example 1. 2010 taxes cheap 1099 g form w 2 George is a widower with one child and earns $24,000 a year. 2010 taxes cheap 1099 g form w 2 He pays work-related expenses of $2,900 for the care of his 4-year-old child and qualifies to claim the credit for child and dependent care expenses. 2010 taxes cheap 1099 g form w 2 His employer pays an additional $1,000 under a dependent care benefit plan. 2010 taxes cheap 1099 g form w 2 This $1,000 is excluded from George's income. 2010 taxes cheap 1099 g form w 2 Although the dollar limit for his work-related expenses is $3,000 (one qualifying person), George figures his credit on only $2,000 of the $2,900 work-related expenses he paid. 2010 taxes cheap 1099 g form w 2 This is because his dollar limit is reduced as shown next. 2010 taxes cheap 1099 g form w 2   George's Reduced Dollar Limit 1) Maximum allowable expenses for one qualifying person $3,000 2) Minus: Dependent care benefits George excludes from income −1,000 3) Reduced dollar limit on expenses George can use for the credit $2,000 Example 2. 2010 taxes cheap 1099 g form w 2 Randall is married and both he and his wife are employed. 2010 taxes cheap 1099 g form w 2 Each has earned income in excess of $6,000. 2010 taxes cheap 1099 g form w 2 They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. 2010 taxes cheap 1099 g form w 2 Randall's work-related expenses are $6,000 for the year. 2010 taxes cheap 1099 g form w 2 Randall's employer has a dependent care assistance program as part of its cafeteria plan, which allows employees to make pre-tax contributions to a dependent care flexible spending arrangement. 2010 taxes cheap 1099 g form w 2 Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. 2010 taxes cheap 1099 g form w 2 Although the dollar limit for his work- related expenses is $6,000 (two or more qualifying persons), Randall figures his credit on only $1,000 of the $6,000 work-related expense paid. 2010 taxes cheap 1099 g form w 2 This is because his dollar limit is reduced as shown next. 2010 taxes cheap 1099 g form w 2   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits Randall selects from employer's cafeteria plan and excludes from income −5,000 3) Reduced dollar limit on expenses Randall can use for the credit $1,000 Amount of Credit To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits) by a percentage. 2010 taxes cheap 1099 g form w 2 This percentage depends on your adjusted gross income shown on Form 1040, line 38, or Form 1040A, line 22. 2010 taxes cheap 1099 g form w 2 The following table shows the percentage to use based on adjusted gross income. 2010 taxes cheap 1099 g form w 2   IF your adjusted gross income is: THEN the percentage is:       Over   But not over         $0   $15,000   35%       15,000   17,000   34%       17,000   19,000   33%       19,000   21,000   32%       21,000   23,000   31%       23,000   25,000   30%       25,000   27,000   29%       27,000   29,000   28%       29,000   31,000   27%       31,000   33,000   26%       33,000   35,000   25%       35,000   37,000   24%       37,000   39,000   23%       39,000   41,000   22%       41,000   43,000   21%       43,000   No limit   20%   How To Claim the Credit To claim the credit, you can file Form 1040 or Form 1040A. 2010 taxes cheap 1099 g form w 2 You cannot claim the credit on Form 1040EZ. 2010 taxes cheap 1099 g form w 2 Form 1040 or 1040A. 2010 taxes cheap 1099 g form w 2   You must complete Form 2441 and attach it to your Form 1040 or 1040A. 2010 taxes cheap 1099 g form w 2 Enter the credit on Form 1040, line 48, or Form 1040A, line 29. 2010 taxes cheap 1099 g form w 2 Limit on credit. 2010 taxes cheap 1099 g form w 2   The amount of credit you can claim is generally limited to the amount of your tax. 2010 taxes cheap 1099 g form w 2 For more information, see the Instructions for Form 2441. 2010 taxes cheap 1099 g form w 2 Tax credit not refundable. 2010 taxes cheap 1099 g form w 2   You cannot get a refund for any part of the credit that is more than this limit. 2010 taxes cheap 1099 g form w 2 Recordkeeping. 2010 taxes cheap 1099 g form w 2 You should keep records of your work-related expenses. 2010 taxes cheap 1099 g form w 2 Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and the length of the disability. 2010 taxes cheap 1099 g form w 2 Other records you should keep to support your claim for the credit are described earlier under Provider Identification Test . 2010 taxes cheap 1099 g form w 2 Employment Taxes for Household Employers If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. 2010 taxes cheap 1099 g form w 2 If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. 2010 taxes cheap 1099 g form w 2 If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. 2010 taxes cheap 1099 g form w 2 Self-employed persons who are in business for themselves are not household employees. 2010 taxes cheap 1099 g form w 2 Usually, you are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business. 2010 taxes cheap 1099 g form w 2 If you use a placement agency that exercises control over what work is done and how it will be done by a babysitter or companion who works in your home, the worker is not your employee. 2010 taxes cheap 1099 g form w 2 This control could include providing rules of conduct and appearance and requiring regular reports. 2010 taxes cheap 1099 g form w 2 In this case, you do not have to pay employment taxes. 2010 taxes cheap 1099 g form w 2 But, if an agency merely gives you a list of sitters and you hire one from that list, and pay the sitter directly, the sitter may be your employee. 2010 taxes cheap 1099 g form w 2 If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. 2010 taxes cheap 1099 g form w 2 Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. 2010 taxes cheap 1099 g form w 2 Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. 2010 taxes cheap 1099 g form w 2 Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. 2010 taxes cheap 1099 g form w 2 For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. 2010 taxes cheap 1099 g form w 2 State employment tax. 2010 taxes cheap 1099 g form w 2   You may also have to pay state unemployment tax. 2010 taxes cheap 1099 g form w 2 Contact your state unemployment tax office for information. 2010 taxes cheap 1099 g form w 2 You should also find out whether you need to pay or collect other state employment taxes or carry workers' compensation insurance. 2010 taxes cheap 1099 g form w 2 For a list of state unemployment tax agencies, visit the U. 2010 taxes cheap 1099 g form w 2 S. 2010 taxes cheap 1099 g form w 2 Department of Labor's website. 2010 taxes cheap 1099 g form w 2 A link to that website is in Publication 926, or you can find it with an online search. 2010 taxes cheap 1099 g form w 2 Prev  Up  Next   Home   More Online Publications