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Filing 1040nrez

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Filing 1040nrez

Filing 1040nrez Publication 587 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Filing 1040nrez Tax questions. Filing 1040nrez Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 587, such as legislation enacted after it was published, go to www. Filing 1040nrez irs. Filing 1040nrez gov/pub587. Filing 1040nrez What's New The IRS now provides a simplified method to determine your expenses for business use of your home. Filing 1040nrez The simplified method is an alternative to calculating and substantiating actual expenses. Filing 1040nrez For more information, see Using the Simplified Method under Figuring the Deduction, later. Filing 1040nrez Reminders Photographs of missing children. Filing 1040nrez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Filing 1040nrez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Filing 1040nrez You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Filing 1040nrez Introduction The purpose of this publication is to provide information on figuring and claiming the deduction for business use of your home. Filing 1040nrez The term “home” includes a house, apartment, condominium, mobile home, boat, or similar property which provides basic living accommodations. Filing 1040nrez It also includes structures on the property, such as an unattached garage, studio, barn, or greenhouse. Filing 1040nrez However, it does not include any part of your property used exclusively as a hotel, motel, inn, or similar establishment. Filing 1040nrez Qualifying for a Deduction gives the requirements for qualifying to deduct expenses for the business use of your home (including special rules for employees and special rules for storing inventory or product samples). Filing 1040nrez For special rules that apply to daycare providers, see Daycare Facility . Filing 1040nrez After you determine that you qualify for the deduction, Figuring the Deduction explains the expenses you can deduct using either your actual expenses or the simplified method. Filing 1040nrez The simplified method is an alternative to calculating and substantiating actual expenses. Filing 1040nrez Where To Deduct explains where a self-employed person, employee, or partner will report the deduction. Filing 1040nrez This publication also includes information on the following. Filing 1040nrez Selling a home that was used partly for business. Filing 1040nrez Deducting expenses for furniture and equipment used in your business. Filing 1040nrez Records you should keep. Filing 1040nrez Finally, this publication contains worksheets to help you figure the amount of your deduction if you use your home in your farming business and you are filing Schedule F (Form 1040), you use your home for work as an employee, or you are a partner and the use of your home resulted in unreimbursed ordinary and necessary expenses that you are required to pay under the partnership agreement. Filing 1040nrez If you used your home for business and you are filing Schedule C (Form 1040), you will use either Form 8829 or the Simplified Method Worksheet in your Instructions for Schedule C. Filing 1040nrez The rules in this publication apply to individuals. Filing 1040nrez If you need information on deductions for renting out your property, see Publication 527, Residential Rental Property. Filing 1040nrez Comments and suggestions. Filing 1040nrez   We welcome your comments about this publication and your suggestions for future editions. Filing 1040nrez   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Filing 1040nrez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Filing 1040nrez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Filing 1040nrez   You can send your comments from www. Filing 1040nrez irs. Filing 1040nrez gov/formspubs/. Filing 1040nrez Click on “More Information” and then on “Comment on Tax Forms and Publications. Filing 1040nrez ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Filing 1040nrez Ordering forms and publications. Filing 1040nrez   Visit www. Filing 1040nrez irs. Filing 1040nrez gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Filing 1040nrez Internal Revenue Service 1201 N. Filing 1040nrez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Filing 1040nrez   If you have a tax question, check the information available on IRS. Filing 1040nrez gov or call 1-800-829-1040. Filing 1040nrez We cannot answer tax questions sent to either of the above addresses. Filing 1040nrez Useful Items - You may want to see: Publications 523 Selling Your Home 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Forms (and Instructions) Schedule C (Form 1040) Profit or Loss from Business 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 4562 Depreciation and Amortization 8829 Expenses for Business Use of Your Home  See How To Get Tax Help , near the end of this publication for information about getting publications and forms. Filing 1040nrez Prev  Up  Next   Home   More Online Publications
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    Foreign lottery promoters continue to target Americans with illegal lotteries by using new ways to avoid legal regulations. The latest scheme con artists are using is to send lottery letters in boxes shipped and labeled as cargo in anticipation of inspection by customs officials.
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    Better Business Bureau warns that a new scam is fraudulently using the organization's name in order to steal tens of thousands of dollars from victims who are led to believe they have won a lottery. BBB has been notified an individual was contacted over the phone by someone claiming they were with the Council of Better Business Bureaus (CBBB). The caller used the name Jacob Chasen and offered his phone number, however, it is not a BBB number. The caller indicated the individual had won a BBB lottery, but to receive the winnings, taxes and fees must be paid in advance.

The Filing 1040nrez

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