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File federal and state taxes online for free Publication 503 - Main Content Table of Contents 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. File federal and state taxes online for free Employment Taxes for Household Employers How To Get Tax HelpLow Income Taxpayer Clinics Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR, not Form 1040EZ or Form 1040NR-EZ, and meet all the following tests. File federal and state taxes online for free The care must be for one or more qualifying persons who are identified on Form 2441. File federal and state taxes online for free (See Qualifying Person Test. File federal and state taxes online for free ) You (and your spouse if filing jointly) must have earned income during the year. File federal and state taxes online for free (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. File federal and state taxes online for free ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. File federal and state taxes online for free (See Work-Related Expense Test, later. File federal and state taxes online for free ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. File federal and state taxes online for free 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. File federal and state taxes online for free 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. File federal and state taxes online for free See Payments to Relatives or Dependents under Work-Related Expense Test, later. File federal and state taxes online for free Your filing status may be single, head of household, or qualifying widow(er) with dependent child. File federal and state taxes online for free If you are married, you must file a joint return, unless an exception applies to you. File federal and state taxes online for free See Joint Return Test, later. File federal and state taxes online for free You must identify the care provider on your tax return. File federal and state taxes online for free (See Provider Identification Test, later. File federal and state taxes online for free ) If you exclude or deduct dependent care benefits provided by a dependent care benefit 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). File federal and state taxes online for free (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. File federal and state taxes online for free See Reduced Dollar Limit under How To Figure the Credit, later. File federal and state taxes online for free ) These tests are presented in Figure A and are also explained in detail in this publication. File federal and state taxes online for free Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. File federal and state taxes online for free 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. File federal and state taxes online for free Dependent defined. File federal and state taxes online for free   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. File federal and state taxes online for free To be your dependent, a person must be your qualifying child (or your qualifying relative). File federal and state taxes online for free Qualifying child. File federal and state taxes online for free   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. File federal and state taxes online for free More information. File federal and state taxes online for free   For more information about who is a dependent or a qualifying child, see Publication 501. File federal and state taxes online for free Physically or mentally not able to care for oneself. File federal and state taxes online for free   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. File federal and state taxes online for free Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. File federal and state taxes online for free Person qualifying for part of year. File federal and state taxes online for free   You determine a person's qualifying status each day. File federal and state taxes online for free 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. File federal and state taxes online for free Also see Yearly limit under Dollar Limit, later. File federal and state taxes online for free Birth or death of otherwise qualifying person. File federal and state taxes online for free   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 more than half the time he or she was alive in 2013. File federal and state taxes online for free Taxpayer identification number. File federal and state taxes online for free   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). File federal and state taxes online for free If the correct information is not shown, the credit may be reduced or disallowed. File federal and state taxes online for free Individual taxpayer identification number (ITIN) for aliens. File federal and state taxes online for free   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. File federal and state taxes online for free The ITIN is entered wherever an SSN is requested on a tax return. File federal and state taxes online for free If the alien does not have an ITIN, he or she must apply for one. File federal and state taxes online for free See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. File federal and state taxes online for free   An ITIN is for tax use only. File federal and state taxes online for free It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. File federal and state taxes online for free S. File federal and state taxes online for free law. File federal and state taxes online for free Adoption taxpayer identification number (ATIN). File federal and state taxes online for free   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. File federal and state taxes online for free File Form W-7A, Application for Taxpayer Identification Number for Pending U. File federal and state taxes online for free S. File federal and state taxes online for free Adoptions. File federal and state taxes online for free Child of divorced or separated parents or parents living apart. File federal and state taxes online for free   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. File federal and state taxes online for free   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. File federal and state taxes online for free 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. File federal and state taxes online for free For details and an exception for a parent who works at night, see Publication 501. File federal and state taxes online for free   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. File federal and state taxes online for free Please click here for the text description of the image. File federal and state taxes online for free Figure a. File federal and state taxes online for free Can you claim the credit Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. File federal and state taxes online for free Earned income. File federal and state taxes online for free   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. File federal and state taxes online for free A net loss from self-employment reduces earned income. File federal and state taxes online for free Earned income also includes strike benefits and any disability pay you report as wages. File federal and state taxes online for free   Generally, only taxable compensation is included. File federal and state taxes online for free However, you can elect to include nontaxable combat pay in earned income. File federal and state taxes online for free If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. File federal and state taxes online for free (In other words, if one of you makes the election, the other one can also make it but does not have to. File federal and state taxes online for free ) Including this income will give you a larger credit only if your (or your spouse's) other earned income is less than the amount entered on line 3 of Form 2441. File federal and state taxes online for free You should figure your credit both ways and make the election if it gives you a greater tax benefit. File federal and state taxes online for free    You can choose to include your nontaxable combat pay in earned income when figuring your credit for child and dependent care expenses, even if you choose not to include it in earned income for the earned income credit or the exclusion or deduction for dependent care benefits. File federal and state taxes online for free Members of certain religious faiths opposed to social security. File federal and state taxes online for free   This section is for 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. File federal and state taxes online for free These forms are: Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners, and Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of recognized religious groups. File federal and state taxes online for free   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. File federal and state taxes online for free For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. File federal and state taxes online for free Form 4361. File federal and state taxes online for free   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. File federal and state taxes online for free This includes wages, salaries, tips, and other taxable employee compensation. File federal and state taxes online for free   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. File federal and state taxes online for free Examples include fees for performing marriages and honoraria for delivering speeches. File federal and state taxes online for free   Any amount you received for work that is not related to your ministerial duties is earned income. File federal and state taxes online for free Form 4029. File federal and state taxes online for free   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. File federal and state taxes online for free   However, amounts you received as a self-employed individual do not count as earned income. File federal and state taxes online for free What is not earned income?   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received, Income of a nonresident alien that is not effectively connected with a U. File federal and state taxes online for free S. File federal and state taxes online for free trade or business, or Any amount received for work while an inmate in a penal institution. File federal and state taxes online for free Rule for student-spouse or spouse not able to care for self. File federal and state taxes online for free   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. File federal and state taxes online for free (Your spouse also must live with you for more than half the year. File federal and state taxes online for free )   If you are filing a joint return, this rule also applies to you. File federal and state taxes online for free You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. File federal and state taxes online for free   Figure the earned income of the nonworking spouse, described under (1) or (2) above, as shown under Earned Income Limit under How To Figure the Credit, later. File federal and state taxes online for free   This rule applies to only one spouse for any one month. File federal and state taxes online for free 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. File federal and state taxes online for free Full-time student. File federal and state taxes online for free    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. File federal and state taxes online for free You must have been a full-time student for some part of each of 5 calendar months during the year. File federal and state taxes online for free (The months need not be consecutive. File federal and state taxes online for free ) School. File federal and state taxes online for free   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. File federal and state taxes online for free A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. File federal and state taxes online for free Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. File federal and state taxes online for free Expenses are considered work-related only if both of the following are true. File federal and state taxes online for free They allow you (and your spouse if filing jointly) to work or look for work. File federal and state taxes online for free They are for a qualifying person's care. File federal and state taxes online for free Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. File federal and state taxes online for free If you are married, generally both you and your spouse must work or look for work. File federal and state taxes online for free 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. File federal and state taxes online for free Your work can be for others or in your own business or partnership. File federal and state taxes online for free It can be either full time or part time. File federal and state taxes online for free Work also includes actively looking for work. File federal and state taxes online for free However, if you do not find a job and have no earned income for the year, you cannot take this credit. File federal and state taxes online for free See Earned Income Test, earlier. File federal and state taxes online for free An expense is not considered work-related merely because you had it while you were working. File federal and state taxes online for free The purpose of the expense must be to allow you to work. File federal and state taxes online for free Whether your expenses allow you to work or look for work depends on the facts. File federal and state taxes online for free Example 1. File federal and state taxes online for free The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. File federal and state taxes online for free Example 2. File federal and state taxes online for free You work during the day. File federal and state taxes online for free Your spouse works at night and sleeps during the day. File federal and state taxes online for free You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. File federal and state taxes online for free Your expenses are considered work-related. File federal and state taxes online for free Volunteer work. File federal and state taxes online for free   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. File federal and state taxes online for free Work for part of year. File federal and state taxes online for free   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. File federal and state taxes online for free 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. File federal and state taxes online for free 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). File federal and state taxes online for free Temporary absence from work. File federal and state taxes online for free   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. File federal and state taxes online for free Instead, you can figure your credit including the expenses you paid for the period of absence. File federal and state taxes online for free   An absence of 2 weeks or less is a short, temporary absence. File federal and state taxes online for free An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. File federal and state taxes online for free Example. File federal and state taxes online for free You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. File federal and state taxes online for free You become ill and miss 4 months of work but receive sick pay. File federal and state taxes online for free You continue to pay the nanny to care for the children while you are ill. File federal and state taxes online for free Your absence is not a short, temporary absence, and your expenses are not considered work-related. File federal and state taxes online for free Part-time work. File federal and state taxes online for free   If you work part-time, you generally must figure your expenses for each day. File federal and state taxes online for free 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. File federal and state taxes online for free Any day when you work at least 1 hour is a day of work. File federal and state taxes online for free Example 1. File federal and state taxes online for free You work 3 days a week. File federal and state taxes online for free While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. File federal and state taxes online for free You can pay the center $150 for any 3 days a week or $250 for 5 days a week. File federal and state taxes online for free Your child attends the center 5 days a week. File federal and state taxes online for free Your work-related expenses are limited to $150 a week. File federal and state taxes online for free Example 2. File federal and state taxes online for free The facts are the same as in Example 1 except the center does not offer a 3-day option. File federal and state taxes online for free The entire $250 weekly fee may be a work-related expense. File federal and state taxes online for free Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. File federal and state taxes online for free You do not have to choose the least expensive way of providing the care. File federal and state taxes online for free 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. File federal and state taxes online for free Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. File federal and state taxes online for free Expenses for household services qualify if part of the services is for the care of qualifying persons. File federal and state taxes online for free See Household Services, later. File federal and state taxes online for free Expenses not for care. File federal and state taxes online for free   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. File federal and state taxes online for free 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. File federal and state taxes online for free Otherwise, see the discussion of Expenses partly work-related, later. File federal and state taxes online for free   Child support payments are not for care and do not qualify for the credit. File federal and state taxes online for free Education. File federal and state taxes online for free   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. File federal and state taxes online for free   Expenses to attend kindergarten or a higher grade are not expenses for care. File federal and state taxes online for free Do not use these expenses to figure your credit. File federal and state taxes online for free   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. File federal and state taxes online for free   Summer school and tutoring programs are not for care. File federal and state taxes online for free Example 1. File federal and state taxes online for free You take your 3-year-old child to a nursery school that provides lunch and a few educational activities as part of its preschool childcare service. File federal and state taxes online for free The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. File federal and state taxes online for free You can count the total cost when you figure the credit. File federal and state taxes online for free Example 2. File federal and state taxes online for free You place your 10-year-old child in a boarding school so you can work full time. File federal and state taxes online for free Only the part of the boarding school expense that is for the care of your child is a work-related expense. File federal and state taxes online for free You can count that part of the expense in figuring your credit if it can be separated from the cost of education. File federal and state taxes online for free You cannot count any part of the amount you pay the school for your child's education. File federal and state taxes online for free Care outside your home. File federal and state taxes online for free   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. File federal and state taxes online for free Dependent care center. File federal and state taxes online for free   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. File federal and state taxes online for free   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. File federal and state taxes online for free Camp. File federal and state taxes online for free   The cost of sending your child to an overnight camp is not considered a work-related expense. File federal and state taxes online for free    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. File federal and state taxes online for free Transportation. File federal and state taxes online for free   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. File federal and state taxes online for free This includes transportation by bus, subway, taxi, or private car. File federal and state taxes online for free However, transportation not provided by a care provider is not for the care of a qualifying person. File federal and state taxes online for free 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. File federal and state taxes online for free Fees and deposits. File federal and state taxes online for free   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. File federal and state taxes online for free However, a forfeited deposit is not for the care of a qualifying person if care is not provided. File federal and state taxes online for free Example 1. File federal and state taxes online for free 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. File federal and state taxes online for free The fee you paid is a work-related expense. File federal and state taxes online for free Example 2. File federal and state taxes online for free You placed a deposit with a preschool to reserve a place for your 3-year-old child. File federal and state taxes online for free You later sent your child to a different preschool and forfeited the deposit. File federal and state taxes online for free The forfeited deposit is not for care and so is not a work-related expense. File federal and state taxes online for free Household Services 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. File federal and state taxes online for free Definition. File federal and state taxes online for free   Household services are ordinary and usual services done in and around your home that are necessary to run your home. File federal and state taxes online for free They include the services of a housekeeper, maid, or cook. File federal and state taxes online for free However, they do not include the services of a chauffeur, bartender, or gardener. File federal and state taxes online for free Housekeeper. File federal and state taxes online for free   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. File federal and state taxes online for free Expenses partly work-related. File federal and state taxes online for free   If part of an expense is work-related (for either household services or the care of a qualifying person) and part is for other purposes, you have to divide the expense. File federal and state taxes online for free To figure your credit, count only the part that is work-related. File federal and state taxes online for free However, you do not have to divide the expense if only a small part is for other purposes. File federal and state taxes online for free Example. File federal and state taxes online for free You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. File federal and state taxes online for free The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. File federal and state taxes online for free You do not have to divide the expenses. File federal and state taxes online for free You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. File federal and state taxes online for free Nor do you have to divide the expenses between the two children, even though the expenses are partly for the 15-year-old child who is not a qualifying person, because the expense is also partly for the care of your 9-year-old child, who is a qualifying person. File federal and state taxes online for free However, the dollar limit (discussed later) is based on one qualifying person, not two. File federal and state taxes online for free Meals and lodging provided for housekeeper. File federal and state taxes online for free   If you have expenses for meals that your housekeeper eats in your home because of his or her employment, count these as work-related expenses. File federal and state taxes online for free If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. File federal and state taxes online for free Example. File federal and state taxes online for free To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. File federal and state taxes online for free You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. File federal and state taxes online for free However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. File federal and state taxes online for free Taxes paid on wages. File federal and state taxes online for free   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. File federal and state taxes online for free For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. File federal and state taxes online for free 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. File federal and state taxes online for free 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. File federal and state taxes online for free Joint Return Test Generally, married couples must file a joint return to take the credit. File federal and state taxes online for free 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. File federal and state taxes online for free Legally separated. File federal and state taxes online for free   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. File federal and state taxes online for free You may be eligible to take the credit on your return using head of household filing status. File federal and state taxes online for free Married and living apart. File federal and state taxes online for free   You are not considered married and are eligible to take the credit if all the following apply. File federal and state taxes online for free You file a return apart from your spouse. File federal and state taxes online for free Your home is the home of a qualifying person for more than half the year. File federal and state taxes online for free You pay more than half the cost of keeping up your home for the year. File federal and state taxes online for free Your spouse does not live in your home for the last 6 months of the year. File federal and state taxes online for free Costs of keeping up a home. File federal and state taxes online for free   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. File federal and state taxes online for free   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. File federal and state taxes online for free   They also do not include the purchase, permanent improvement, or replacement of property. File federal and state taxes online for free For example, you cannot include the cost of replacing a water heater. File federal and state taxes online for free However, you can include the cost of repairing a water heater. File federal and state taxes online for free Death of spouse. File federal and state taxes online for free   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. File federal and state taxes online for free If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. File federal and state taxes online for free Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. File federal and state taxes online for free Use Form 2441, Part I, to show the information. File federal and state taxes online for free 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). File federal and state taxes online for free Information needed. File federal and state taxes online for free   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. File federal and state taxes online for free    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. File federal and state taxes online for free If the care provider is an organization, then it is the employer identification number (EIN). File federal and state taxes online for free   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). File federal and state taxes online for free In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. File federal and state taxes online for free   If you cannot provide all of the information or the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. File federal and state taxes online for free Getting the information. File federal and state taxes online for free    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. File federal and state taxes online for free 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, Employee's Withholding Allowance Certificate, 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 necessary information. File federal and state taxes online for free    You should keep this information with your tax records. File federal and state taxes online for free Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. File federal and state taxes online for free Due diligence. File federal and state taxes online for free   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. File federal and state taxes online for free However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. File federal and state taxes online for free   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. File federal and state taxes online for free Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. File federal and state taxes online for free Provider refusal. File federal and state taxes online for free    If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). File federal and state taxes online for free Enter “See Attached Statement” in the columns calling for the information you do not have. File federal and state taxes online for free Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. File federal and state taxes online for free Be sure to write your name and social security number on this statement. File federal and state taxes online for free The statement will show that you used due diligence in trying to furnish the necessary information. File federal and state taxes online for free U. File federal and state taxes online for free S. File federal and state taxes online for free citizens and resident aliens living abroad. File federal and state taxes online for free   If you are living abroad, your care provider may not have, and may not be required to get, a U. File federal and state taxes online for free S. File federal and state taxes online for free taxpayer identification number (for example, an SSN or an EIN). File federal and state taxes online for free If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. File federal and state taxes online for free How To Figure the Credit Your credit is a percentage of your work-related expenses. File federal and state taxes online for free Your expenses are subject to the earned income limit and the dollar limit. File federal and state taxes online for free The percentage is based on your adjusted gross income. File federal and state taxes online for free Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. File federal and state taxes online for free Expenses prepaid in an earlier year. File federal and state taxes online for free   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. File federal and state taxes online for free Claim the expenses for the later year as if they were actually paid in that later year. File federal and state taxes online for free Expenses not paid until the following year. File federal and state taxes online for free   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. File federal and state taxes online for free You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. File federal and state taxes online for free See Payments for prior year's expenses under Amount of Credit, later. File federal and state taxes online for free If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. File federal and state taxes online for free You may be able to claim a credit for them on your 2014 return. File federal and state taxes online for free Expenses reimbursed. File federal and state taxes online for free   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. File federal and state taxes online for free Example. File federal and state taxes online for free You paid work-related expenses of $3,000. File federal and state taxes online for free You are reimbursed $2,000 by a state social services agency. File federal and state taxes online for free You can use only $1,000 to figure your credit. File federal and state taxes online for free Medical expenses. File federal and state taxes online for free   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. File federal and state taxes online for free You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. File federal and state taxes online for free   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. File federal and state taxes online for free However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. File federal and state taxes online for free For information on medical expenses, see Publication 502, Medical and Dental Expenses. File federal and state taxes online for free    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. File federal and state taxes online for free Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. File federal and state taxes online for free See Reduced Dollar Limit, later. File federal and state taxes online for free But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. File federal and state taxes online for free Dependent care benefits. File federal and state taxes online for free    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. File federal and state taxes online for free Your salary may have been reduced to pay for these benefits. File federal and state taxes online for free If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. File federal and state taxes online for free See Statement for employee, later. File federal and state taxes online for free Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. File federal and state taxes online for free   Enter the amount of these benefits on Form 2441, Part III, line 12. File federal and state taxes online for free Exclusion or deduction. File federal and state taxes online for free   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. File federal and state taxes online for free Your employer can tell you whether your benefit plan qualifies. File federal and state taxes online for free To claim the exclusion, you must complete Part III of Form 2441. File federal and state taxes online for free You cannot use Form 1040EZ. File federal and state taxes online for free   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. File federal and state taxes online for free Therefore, you would not get an exclusion from wages. File federal and state taxes online for free Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. File federal and state taxes online for free To claim the deduction, you must use Form 2441. File federal and state taxes online for free   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). File federal and state taxes online for free   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. File federal and state taxes online for free    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. File federal and state taxes online for free Statement for employee. File federal and state taxes online for free   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. File federal and state taxes online for free Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. File federal and state taxes online for free Effect of exclusion on credit. File federal and state taxes online for free   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. File federal and state taxes online for free 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. File federal and state taxes online for free Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. File federal and state taxes online for free 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. File federal and state taxes online for free Example. File federal and state taxes online for free You remarried on December 3. File federal and state taxes online for free Your earned income for the year was $18,000. File federal and state taxes online for free Your new spouse's earned income for the year was $2,000. File federal and state taxes online for free You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. File federal and state taxes online for free The amount of expenses you use to figure your credit cannot be more than $2,000 (the smaller of your earned income or that of your spouse). File federal and state taxes online for free Separated spouse. File federal and state taxes online for free   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. File federal and state taxes online for free Use only your income in figuring the earned income limit. File federal and state taxes online for free Surviving spouse. File federal and state taxes online for free   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. File federal and state taxes online for free Community property laws. File federal and state taxes online for free   Disregard community property laws when you figure earned income for this credit. File federal and state taxes online for free Self-employment earnings. File federal and state taxes online for free   If you are self-employed, include your net earnings in earned income. File federal and state taxes online for free For purposes of the child and dependent care credit, net earnings from self-employment generally means the amount from Schedule SE (either Section A or Section B), line 3, minus any deduction for self-employment tax on Form 1040 or Form 1040NR, line 27. File federal and state taxes online for free Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. File federal and state taxes online for free Clergy or church employee. File federal and state taxes online for free   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. File federal and state taxes online for free Statutory employee. File federal and state taxes online for free   If you filed Schedule C (Form 1040) or C-EZ (Form 1040) to report income as a statutory employee, also include as earned income the amount from line 1 of that Schedule C (Form 1040) or C-EZ (Form 1040). File federal and state taxes online for free Net loss. File federal and state taxes online for free   You must reduce your earned income by any net loss from self-employment. File federal and state taxes online for free Optional method if earnings are low or a net loss. File federal and state taxes online for free   If your net earnings from self-employment are low or you have a net loss, you may be able to figure your net earnings by using an optional method instead of the regular method. File federal and state taxes online for free Get Publication 334, Tax Guide for Small Business, for details. File federal and state taxes online for free If you use an optional method to figure net earnings for self-employment tax purposes, include those net earnings in your earned income for this credit. File federal and state taxes online for free In this case, subtract any deduction you claimed on Form 1040 or Form 1040NR, line 27, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings. File federal and state taxes online for free You or your spouse is a student or not able to care for self. File federal and state taxes online for free   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. File federal and state taxes online for free 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. File federal and state taxes online for free Spouse works. File federal and state taxes online for free   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. File federal and state taxes online for free Spouse qualifies for part of month. File federal and state taxes online for free   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. File federal and state taxes online for free You are a student or not able to care for self. File federal and state taxes online for free   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. File federal and state taxes online for free 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). File federal and state taxes online for free If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. File federal and state taxes online for free Both spouses qualify. File federal and state taxes online for free   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. File federal and state taxes online for free Example. File federal and state taxes online for free Jim works and keeps up a home for himself and his wife Sharon. File federal and state taxes online for free Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. File federal and state taxes online for free During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. File federal and state taxes online for free These expenses also qualify as medical expenses. File federal and state taxes online for free Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. File federal and state taxes online for free Jim and Sharon's earned income limit is the smallest of the following amounts. File federal and state taxes online for free   Jim and Sharon's Earned Income Limit   1) Work-related expenses Jim paid $   3,300   2) Jim's earned income $   29,000   3) Income considered earned by Sharon (11 × $250) $    2,750   Jim and Sharon can use $2,750 to figure the credit and treat the balance of $550 ($3,300 − $2,750) as a medical expense. File federal and state taxes online for free However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. File federal and state taxes online for free Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. File federal and state taxes online for free This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. File federal and state taxes online for free If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. File federal and state taxes online for free This limit does not need to be divided equally among them. File federal and state taxes online for free 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. File federal and state taxes online for free Yearly limit. File federal and state taxes online for free   The dollar limit is a yearly limit. File federal and state taxes online for free The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. File federal and state taxes online for free Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. File federal and state taxes online for free Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. File federal and state taxes online for free Example 1. File federal and state taxes online for free You pay $500 a month for after-school care for your son. File federal and state taxes online for free He turned 13 on May 1 and is no longer a qualifying person. File federal and state taxes online for free You can use the $2,000 of expenses for his care January through April to figure your credit because it is not more than the $3,000 yearly limit. File federal and state taxes online for free Example 2. File federal and state taxes online for free In July of this year, to permit your spouse to begin a new job, you enrolled your 3-year-old daughter in a nursery school that provides preschool childcare. File federal and state taxes online for free You paid $300 per month for the childcare. File federal and state taxes online for free You can use the full $1,800 you paid ($300 × 6 months) as qualified expenses because it is not more than the $3,000 yearly limit. File federal and state taxes online for free 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. File federal and state taxes online for free Your reduced dollar limit is figured on Form 2441, Part III. File federal and state taxes online for free See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. File federal and state taxes online for free Example 1. File federal and state taxes online for free George is a widower with one child and earns $24,000 a year. File federal and state taxes online for free 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. File federal and state taxes online for free His employer pays an additional $1,000 under a qualified dependent care benefit plan. File federal and state taxes online for free This $1,000 is excluded from George's income. File federal and state taxes online for free 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. File federal and state taxes online for free This is because his dollar limit is reduced as shown next. File federal and state taxes online for free   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. File federal and state taxes online for free Randall is married and both he and his wife are employed. File federal and state taxes online for free Each has earned income in excess of $6,000. File federal and state taxes online for free They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. File federal and state taxes online for free Randall's work-related expenses are $6,000 for the year. File federal and state taxes online for free 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. File federal and state taxes online for free Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. File federal and state taxes online for free 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. File federal and state taxes online for free This is because his dollar limit is reduced as shown next. File federal and state taxes online for free   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits selected from employer's cafeteria plan and  excluded from Randall's income −5,000 3) Reduced dollar limit on work-related 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. File federal and state taxes online for free This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. File federal and state taxes online for free The following table shows the percentage to use based on adjusted gross income. File federal and state taxes online for free   IF your adjusted gross income is: THEN the       Over:       But not over:   percentage is:       $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%   To qualify for the credit, you must have one or more qualifying persons. File federal and state taxes online for free You should show the expenses for each person on Form 2441, line 2, column (c). File federal and state taxes online for free However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. File federal and state taxes online for free You should list -0- for the one person and the actual amount for the second person. File federal and state taxes online for free The $6,000 limit that applies to two or more qualifying persons would still be used to compute your credit unless you already excluded or deducted, in Part III of Form 2441, certain dependent care benefits paid to you (or on your behalf) by your employer. File federal and state taxes online for free Example. File federal and state taxes online for free Roger and Megan Paris have two qualifying children. File federal and state taxes online for free They received $1,000 of dependent care benefits from Megan's employer during 2013, but they incurred a total of $19,500 of child and dependent care expenses. File federal and state taxes online for free They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). File federal and state taxes online for free Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. File federal and state taxes online for free Line 30 tells them to complete line 2 without including any dependent care benefits. File federal and state taxes online for free They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. File federal and state taxes online for free Line 2 Example (a) Qualifying person's name (b) Qualifying person's social security number (c) Qualified expenses you incurred and paid in 2013 for the person listed in column (a) First Last Susan Paris 123-00-6789 -0- James Paris 987-00-4321 18,500. File federal and state taxes online for free 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. File federal and state taxes online for free However, their son James has special needs and they paid $18,500 for his care. File federal and state taxes online for free Line 3 imposes a $5,000 limit for two or more children ($6,000 limit, minus $1,000 already excluded from income = $5,000) and Roger and Megan continue to complete the form. File federal and state taxes online for free Even though line 2 indicates one of the Paris children did not have any dependent care expenses, it does not change the fact that they had two qualifying children for the purposes of Form 2441. File federal and state taxes online for free Payments for prior year's expenses. File federal and state taxes online for free   If you had work-related expenses in 2012 that you paid in 2013, you may be able to increase the credit on your 2013 return. File federal and state taxes online for free Attach a statement to your form showing how you figured the additional amount from 2012. File federal and state taxes online for free Then enter “CPYE” (Credit for Prior Year Expenses) and the amount of the credit on the dotted line next to line 9 on Form 2441. File federal and state taxes online for free Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. File federal and state taxes online for free Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. File federal and state taxes online for free See Worksheet A. File federal and state taxes online for free Example. File federal and state taxes online for free In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. File federal and state taxes online for free Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. File federal and state taxes online for free Their adjusted gross income for 2012 was $30,000. File federal and state taxes online for free Sam's earned income of $14,000 was less than Kate's earned income. File federal and state taxes online for free A credit for their 2012 expenses paid in 2013 is not allowed in 2012. File federal and state taxes online for free It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. File federal and state taxes online for free The filled-in Worksheet A they used to figure this credit is shown later. File federal and state taxes online for free Sam and Kate add the $162 from line 13 of this worksheet to their 2013 credit and enter the total on their Form 2441, line 9. File federal and state taxes online for free They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. File federal and state taxes online for free Worksheet A. File federal and state taxes online for free Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. File federal and state taxes online for free 1. File federal and state taxes online for free   Enter your 2012 qualified expenses paid in 2012 1. File federal and state taxes online for free     2. File federal and state taxes online for free   Enter your 2012 qualified expenses paid in 2013 2. File federal and state taxes online for free     3. File federal and state taxes online for free   Add the amounts on lines 1 and 2 3. File federal and state taxes online for free     4. File federal and state taxes online for free   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. File federal and state taxes online for free     5. File federal and state taxes online for free   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. File federal and state taxes online for free     6. File federal and state taxes online for free   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. File federal and state taxes online for free     7. File federal and state taxes online for free   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. File federal and state taxes online for free     8. File federal and state taxes online for free   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. File federal and state taxes online for free     9. File federal and state taxes online for free   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. File federal and state taxes online for free     10. File federal and state taxes online for free   Subtract the amount on line 9 from the amount on line 8 and enter the result. File federal and state taxes online for free If zero or less, stop here. File federal and state taxes online for free You cannot increase your 2013 credit by any previous year's expenses 10. File federal and state taxes online for free     11. File federal and state taxes online for free   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. File federal and state taxes online for free     12. File federal and state taxes online for free   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. File federal and state taxes online for free             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . File federal and state taxes online for free 35                 15,000 — 17,000     . File federal and state taxes online for free 34                 17,000 — 19,000     . File federal and state taxes online for free 33                 19,000 — 21,000     . File federal and state taxes online for free 32                 21,000 — 23,000     . File federal and state taxes online for free 31                 23,000 — 25,000     . File federal and state taxes online for free 30                 25,000 — 27,000     . File federal and state taxes online for free 29                 27,000 — 29,000     . File federal and state taxes online for free 28                 29,000 — 31,000     . File federal and state taxes online for free 27                 31,000 — 33,000     . File federal and state taxes online for free 26                 33,000 — 35,000     . File federal and state taxes online for free 25                 35,000 — 37,000     . File federal and state taxes online for free 24                 37,000 — 39,000     . File federal and state taxes online for free 23                 39,000 — 41,000     . File federal and state taxes online for free 22                 41,000 — 43,000     . File federal and state taxes online for free 21                 43,000 — No limit     . File federal and state taxes online for free 20           13. File federal and state taxes online for free   Multiply line 10 by line 12. File federal and state taxes online for free Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. File federal and state taxes online for free Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses           Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. File federal and state taxes online for free       Worksheet A. File federal and state taxes online for free Filled-in Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. File federal and state taxes online for free 1. File federal and state taxes online for free   Enter your 2012 qualified expenses paid in 2012 1. File federal and state taxes online for free   $2,000 2. File federal and state taxes online for free   Enter your 2012 qualified expenses paid in 2013 2. File federal and state taxes online for free   600 3. File federal and state taxes online for free   Add the amounts on lines 1 and 2 3. File federal and state taxes online for free   2,600 4. File federal and state taxes online for free   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. File federal and state taxes online for free   3,000 5. File federal and state taxes online for free   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. File federal and state taxes online for free   0 6. File federal and state taxes online for free   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. File federal and state taxes online for free   3,000 7. File federal and state taxes online for free   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. File federal and state taxes online for free   14,000 8. File federal and state taxes online for free   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. File federal and state taxes online for free   2,600 9. File federal and state taxes online for free   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. File federal and state taxes online for free   2,000 10. File federal and state taxes online for free   Subtract the amount on line 9 from the amount on line 8 and enter the result. File federal and state taxes online for free If zero or less, stop here. File federal and state taxes online for free You cannot increase your 2013 credit by any previous year's expenses 10. File federal and state taxes online for free   600 11. File federal and state taxes online for free   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. File federal and state taxes online for free   30,000 12. File federal and state taxes online for free   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. File federal and state taxes online for free   . File federal and state taxes online for free 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . File federal and state taxes online for free 35                 15,000 — 17,000     . File federal and state taxes online for free 34                 17,000 — 19,000     . File federal and state taxes online for free 33                 19,000 — 21,000     . File federal and state taxes online for free 32                 21,000 — 23,000     . File federal and state taxes online for free 31                 23,000 — 25,000     . File federal and state taxes online for free 30                 25,000 — 27,000     . File federal and state taxes online for free 29                 27,000 — 29,000     . File federal and state taxes online for free 28                 29,000 — 31,000     . File federal and state taxes online for free 27                 31,000 — 33,000     . File federal and state taxes online for free 26                 33,000 — 35,000     . File federal and state taxes online for free 25                 35,000 — 37,000     . File federal and state taxes online for free 24                 37,000 — 39,000     . File federal and state taxes online for free 23                 39,000 — 41,000     . File federal and state taxes online for free 22                 41,000 — 43,000     . File federal and state taxes online for free 21                 43,000 — No limit     . File federal and state taxes online for free 20           13. File federal and state taxes online for free   Multiply line 10 by line 12. File federal and state taxes online for free Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. File federal and state taxes online for free Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses             Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. File federal and state taxes online for free   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. File federal and state taxes online for free You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. File federal and state taxes online for free Form 1040, Form 1040A, or Form 1040NR. File federal and state taxes online for free    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. File federal and state taxes online for free Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. File federal and state taxes online for free Limit on credit. File federal and state taxes online for free    The amount of credit you can claim is limited to your tax. File federal and state taxes online for free For more information, see the Instructions for Form 2441. File federal and state taxes online for free Tax credit not refundable. File federal and state taxes online for free   You cannot get a refund for any part of the credit that is more than this limit. File federal and state taxes online for free Recordkeeping. File federal and state taxes online for free You should keep records of your work-related expenses. File federal and state taxes online for free Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and length of the disability. File federal and state taxes online for free Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. File federal and state taxes online for free 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. File federal and state taxes online for free If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. File federal and state taxes online for free If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. File federal and state taxes online for free Self-employed persons who are in business for themselves are not household employees. File federal and state taxes online for free 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. File federal and state taxes online for free 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. File federal and state taxes online for free This control could include providing rules of conduct and appearance and requiring regular reports. File federal and state taxes online for free In this case, you do not have to pay employment taxes. File federal and state taxes online for free 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. File federal and state taxes online for free If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. File federal and state taxes online for free Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. File federal and state taxes online for free Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. File federal and state taxes online for free Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. File federal and state taxes online for free For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. File federal and state taxes online for free State employment tax. File federal and state taxes online for free   You may also have to pay state unemployment tax. File federal and state taxes online for free Contact your state unemployment tax office for information. File federal and state taxes online for free You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. File federal and state taxes online for free For a list of state unemployment tax agencies, visit the U. File federal and state taxes online for free S. File federal and state taxes online for free Department of Labor's website. File federal and state taxes online for free To find that website, use the link in Publication 926 or search online. File federal and state taxes online for free How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. File federal and state taxes online for free Free help with your tax return. File federal and state taxes online for free   You can get free help preparing your return nationwide from IRS-certified volunteers. File federal and state taxes online for free The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. File federal and state taxes online for free The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. File federal and state taxes online for free Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. File federal and state taxes online for free In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. File federal and state taxes online for free To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. File federal and state taxes online for free gov, download the IRS2Go app, or call 1-800-906-9887. File federal and state taxes online for free   As part of the TCE program, AARP offers the Tax-Aide counseling program. File federal and state taxes online for free To find the nearest AARP Tax-Aide site, visit AARP's website at www. File federal and state taxes online for free aarp. File federal and state taxes online for free org/money/taxaide or call 1-888-227-7669. File federal and state taxes online for free For more information on these programs, go to IRS. File federal and state taxes online for free gov and enter “VITA” in the search box. File federal and state taxes online for free Internet. File federal and state taxes online for free    IRS. File federal and state taxes online for free gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. File federal and state taxes online for free Download the free IRS2Go app from the iTunes app store or from Google Play. File federal and state taxes online for free Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. File federal and state taxes online for free Check the status of your 2013 refund with the Where's My Refund? application on IRS. File federal and state taxes online for free gov or download the IRS2Go app and select the Refund Status option. File federal and state taxes online for free The IRS issues more than 9 out of 10 refunds in less than 21 days. File federal and state taxes online for free Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. File federal and state taxes online for free You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. File federal and state taxes online for free The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. File federal and state taxes online for free Use the Interactive Tax Assistant (ITA) to research your tax questions. File federal and state taxes online for free No need to wait on the phone or stand in line. File federal and state taxes online for free The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. File federal and state taxes online for free When you reach the response screen, you can print the entire interview and the final response for your records. File federal and state taxes online for free New subject areas are added on a regular basis. File federal and state taxes online for free  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. File federal and state taxes online for free gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. File federal and state taxes online for free You can use the IRS Tax Map, to search publications and instructions by topic or keyword. File federal and state taxes online for free The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. File federal and state taxes online for free When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. File federal and state taxes online for free Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. File federal and state taxes online for free You can also ask the IRS to mail a return or an account transcript to you. File federal and state taxes online for free Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. File federal and state taxes online for free gov or by calling 1-800-908-9946. File federal and state taxes online for free Tax return and tax account transcripts are generally available for the current year and the past three years. File federal and state taxes online for free Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. File federal and state taxes online for free Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. File federal and state taxes online for free If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. File federal and state taxes online for free Check the status of your amended return using Where's My Amended Return? Go to IRS. File federal and state taxes online for free gov and enter Where's My Amended Return? in the search box. File federal and state taxes online for free You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. File federal and state taxes online for free It can take up to 3 weeks from the date you mailed it to show up in our system. File federal and state taxes online for free Make a payment using one of several safe and convenient electronic payment options available on IRS. File federal and state taxes online for free gov. File federal and state taxes online for free Select the Payment tab on the front page of IRS. File federal and state taxes online for free gov for more information. File federal and state taxes online for free Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. File federal and state taxes online for free Figure your income tax withholding with the IRS Withholding Calculator on IRS. File federal and state taxes online for free gov. File federal and state taxes online for free Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. File federal and state taxes online for free Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. File federal and state taxes online for free gov. File federal and state taxes online for free Request an Electronic Filing PIN by going to IRS. File federal and state taxes online for free gov and entering Electronic Filing PIN in the search box. File federal and state taxes online for free Download forms, instructions and publications, including accessible versions for people with disabilities. File federal and state taxes online for free Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. File federal and state taxes online for free gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. File federal and state taxes online for free An employee can answer questions about your tax account or help you set up a payment plan. File federal and state taxes online for free Before you visit, check the Office Locator on IRS. File federal and state taxes online for free gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. File federal and state taxes online for free If you have a special need, such as a disability, you can request an appointment. File federal and state taxes online for free Call the local number listed in the Office Locator, or look in the phone book under Unit
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File federal and state taxes online for free 29. File federal and state taxes online for free   Limit on Itemized Deductions Table of Contents Introduction Useful Items - You may want to see: Are You Subject to the Limit? Which Itemized Deductions Are Limited? Which Itemized Deductions Are Not Limited? How Do You Figure the Limit?Example. File federal and state taxes online for free Introduction This chapter discusses the overall limit on itemized deductions on Schedule A (Form 1040). File federal and state taxes online for free The following topics are included. File federal and state taxes online for free Who is subject to the limit. File federal and state taxes online for free Which itemized deductions are limited. File federal and state taxes online for free How to figure the limit. File federal and state taxes online for free Useful Items - You may want to see: Forms (and Instructions) Schedule A (Form 1040) Itemized Deductions Are You Subject to the Limit? You are subject to the limit on certain itemized deductions if your adjusted gross income (AGI) is more than $300,000 if married filing jointly or qualifying widow(er), $275,000 if head of household, $250,000 if single, or $150,000 if married filing separately. File federal and state taxes online for free Your AGI is the amount on Form 1040, line 38. File federal and state taxes online for free Which Itemized Deductions Are Limited? The following Schedule A (Form 1040) deductions are subject to the overall limit on itemized deductions. File federal and state taxes online for free Taxes paid—line 9 Interest paid—lines 10, 11, 12, and 13 Gifts to charity—line 19 Job expenses and certain miscellaneous deductions—line 27 Other miscellaneous deductions—line 28, excluding gambling and casualty or theft losses. File federal and state taxes online for free . File federal and state taxes online for free Which Itemized Deductions Are Not Limited? The following Schedule A (Form 1040) deductions are not subject to the overall limit on itemized deductions. File federal and state taxes online for free However, they are still subject to other applicable limits. File federal and state taxes online for free Medical and dental expenses—line 4. File federal and state taxes online for free Investment interest expense—line 14. File federal and state taxes online for free Casualty and theft losses of personal use property—line 20. File federal and state taxes online for free Casualty and theft losses of income-producing property—line 28. File federal and state taxes online for free Gambling losses—line 28. File federal and state taxes online for free How Do You Figure the Limit? If your itemized deductions are subject to the limit, the total of all your itemized deductions is reduced by the smaller of: 80% of your itemized deductions that are affected by the limit. File federal and state taxes online for free See Which Itemized Deductions Are Limited , earlier, or 3% of the amount by which your AGI exceeds $300,000 if married filing jointly or qualifying widow(er), $275,000 if head of household, $250,000 if single, or $150,000 if married filing separately. File federal and state taxes online for free Before you figure the overall limit on itemized deductions, you first must complete Schedule A (Form 1040), lines 1 through 28, including any related forms (such as Form 2106, Form 4684, etc. File federal and state taxes online for free ). File federal and state taxes online for free The overall limit on itemized deductions is figured after you have applied any other limit on the allowance of any itemized deduction. File federal and state taxes online for free These other limits include charitable contribution limits (chapter 24), the limit on certain meal and entertainment expenses (chapter 26), and the 2%-of-adjusted-gross-income limit on certain miscellaneous deductions (chapter 28). File federal and state taxes online for free Itemized Deductions Worksheet. File federal and state taxes online for free   After you have completed Schedule A (Form 1040) through line 28, you can use the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040) to figure your limit. File federal and state taxes online for free Enter the result on Schedule A (Form 1040), line 29. File federal and state taxes online for free Keep the worksheet for your records. File federal and state taxes online for free    You should compare the amount of your standard deduction to the amount of your itemized deductions after applying the limit. File federal and state taxes online for free Use the greater amount when completing Form 1040, line 40. File federal and state taxes online for free See chapter 20 for information on how to figure your standard deduction. File federal and state taxes online for free Example. File federal and state taxes online for free For tax year 2013 Bill and Terry Willow are filing a joint return on Form 1040. File federal and state taxes online for free Their adjusted gross income on line 38 is $325,500. File federal and state taxes online for free Their Schedule A itemized deductions are as follows: Taxes paid—line 9 $17,900 Interest paid—lines 10, 11, 12, and 13 45,000 Investment interest expense—line 14 41,000 Gifts to charity—line 19 21,000 Job expenses—line 27 17,240 Total $142,140 The Willows’ investment interest expense deduction ($41,000 from Schedule A (Form 1040), line 14) is not subject to the overall limit on itemized deductions. File federal and state taxes online for free The Willows use the Itemized Deductions Worksheet in the Schedule A (Form 1040) instructions to figure their overall limit. File federal and state taxes online for free Of their $142,140 total itemized deductions, the Willows can deduct only $141,375 ($142,140 - $765). File federal and state taxes online for free They enter $141,375 on Schedule A (Form 1040), line 29. File federal and state taxes online for free Prev  Up  Next   Home   More Online Publications