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Free H&r Block Taxes

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Free H&r Block Taxes

Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes The care must be for one or more qualifying persons who are identified on Form 2441. Free h&r block taxes (See Qualifying Person Test. Free h&r block taxes ) You (and your spouse if filing jointly) must have earned income during the year. Free h&r block taxes (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Free h&r block taxes ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Free h&r block taxes (See Work-Related Expense Test, later. Free h&r block taxes ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes See Payments to Relatives or Dependents under Work-Related Expense Test, later. Free h&r block taxes Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Free h&r block taxes If you are married, you must file a joint return, unless an exception applies to you. Free h&r block taxes See Joint Return Test, later. Free h&r block taxes You must identify the care provider on your tax return. Free h&r block taxes (See Provider Identification Test, later. Free h&r block taxes ) 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). Free h&r block taxes (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. Free h&r block taxes See Reduced Dollar Limit under How To Figure the Credit, later. Free h&r block taxes ) These tests are presented in Figure A and are also explained in detail in this publication. Free h&r block taxes Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Free h&r block taxes 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. Free h&r block taxes Dependent defined. Free h&r block taxes   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Free h&r block taxes To be your dependent, a person must be your qualifying child (or your qualifying relative). Free h&r block taxes Qualifying child. Free h&r block taxes   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Free h&r block taxes More information. Free h&r block taxes   For more information about who is a dependent or a qualifying child, see Publication 501. Free h&r block taxes Physically or mentally not able to care for oneself. Free h&r block taxes   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Free h&r block taxes Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Free h&r block taxes Person qualifying for part of year. Free h&r block taxes   You determine a person's qualifying status each day. Free h&r block taxes 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. Free h&r block taxes Also see Yearly limit under Dollar Limit, later. Free h&r block taxes Birth or death of otherwise qualifying person. Free h&r block taxes   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. Free h&r block taxes Taxpayer identification number. Free h&r block taxes   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Free h&r block taxes If the correct information is not shown, the credit may be reduced or disallowed. Free h&r block taxes Individual taxpayer identification number (ITIN) for aliens. Free h&r block taxes   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. Free h&r block taxes The ITIN is entered wherever an SSN is requested on a tax return. Free h&r block taxes If the alien does not have an ITIN, he or she must apply for one. Free h&r block taxes See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. Free h&r block taxes   An ITIN is for tax use only. Free h&r block taxes It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Free h&r block taxes S. Free h&r block taxes law. Free h&r block taxes Adoption taxpayer identification number (ATIN). Free h&r block taxes   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. Free h&r block taxes File Form W-7A, Application for Taxpayer Identification Number for Pending U. Free h&r block taxes S. Free h&r block taxes Adoptions. Free h&r block taxes Child of divorced or separated parents or parents living apart. Free h&r block taxes   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. Free h&r block taxes   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Free h&r block taxes 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. Free h&r block taxes For details and an exception for a parent who works at night, see Publication 501. Free h&r block taxes   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. Free h&r block taxes Please click here for the text description of the image. Free h&r block taxes Figure a. Free h&r block taxes 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. Free h&r block taxes Earned income. Free h&r block taxes   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Free h&r block taxes A net loss from self-employment reduces earned income. Free h&r block taxes Earned income also includes strike benefits and any disability pay you report as wages. Free h&r block taxes   Generally, only taxable compensation is included. Free h&r block taxes However, you can elect to include nontaxable combat pay in earned income. Free h&r block taxes If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Free h&r block taxes (In other words, if one of you makes the election, the other one can also make it but does not have to. Free h&r block taxes ) 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. Free h&r block taxes You should figure your credit both ways and make the election if it gives you a greater tax benefit. Free h&r block taxes    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. Free h&r block taxes Members of certain religious faiths opposed to social security. Free h&r block taxes   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. Free h&r block taxes 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. Free h&r block taxes   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. Free h&r block taxes For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Free h&r block taxes Form 4361. Free h&r block taxes   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. Free h&r block taxes This includes wages, salaries, tips, and other taxable employee compensation. Free h&r block taxes   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. Free h&r block taxes Examples include fees for performing marriages and honoraria for delivering speeches. Free h&r block taxes   Any amount you received for work that is not related to your ministerial duties is earned income. Free h&r block taxes Form 4029. Free h&r block taxes   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. Free h&r block taxes   However, amounts you received as a self-employed individual do not count as earned income. Free h&r block taxes 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. Free h&r block taxes S. Free h&r block taxes trade or business, or Any amount received for work while an inmate in a penal institution. Free h&r block taxes Rule for student-spouse or spouse not able to care for self. Free h&r block taxes   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. Free h&r block taxes (Your spouse also must live with you for more than half the year. Free h&r block taxes )   If you are filing a joint return, this rule also applies to you. Free h&r block taxes You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Free h&r block taxes   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. Free h&r block taxes   This rule applies to only one spouse for any one month. Free h&r block taxes 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. Free h&r block taxes Full-time student. Free h&r block taxes    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. Free h&r block taxes You must have been a full-time student for some part of each of 5 calendar months during the year. Free h&r block taxes (The months need not be consecutive. Free h&r block taxes ) School. Free h&r block taxes   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Free h&r block taxes A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Free h&r block taxes Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Free h&r block taxes Expenses are considered work-related only if both of the following are true. Free h&r block taxes They allow you (and your spouse if filing jointly) to work or look for work. Free h&r block taxes They are for a qualifying person's care. Free h&r block taxes Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Free h&r block taxes If you are married, generally both you and your spouse must work or look for work. Free h&r block taxes 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. Free h&r block taxes Your work can be for others or in your own business or partnership. Free h&r block taxes It can be either full time or part time. Free h&r block taxes Work also includes actively looking for work. Free h&r block taxes However, if you do not find a job and have no earned income for the year, you cannot take this credit. Free h&r block taxes See Earned Income Test, earlier. Free h&r block taxes An expense is not considered work-related merely because you had it while you were working. Free h&r block taxes The purpose of the expense must be to allow you to work. Free h&r block taxes Whether your expenses allow you to work or look for work depends on the facts. Free h&r block taxes Example 1. Free h&r block taxes The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Free h&r block taxes Example 2. Free h&r block taxes You work during the day. Free h&r block taxes Your spouse works at night and sleeps during the day. Free h&r block taxes You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Free h&r block taxes Your expenses are considered work-related. Free h&r block taxes Volunteer work. Free h&r block taxes   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Free h&r block taxes Work for part of year. Free h&r block taxes   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. Free h&r block taxes 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. Free h&r block taxes 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). Free h&r block taxes Temporary absence from work. Free h&r block taxes   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. Free h&r block taxes Instead, you can figure your credit including the expenses you paid for the period of absence. Free h&r block taxes   An absence of 2 weeks or less is a short, temporary absence. Free h&r block taxes An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Free h&r block taxes Example. Free h&r block taxes You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Free h&r block taxes You become ill and miss 4 months of work but receive sick pay. Free h&r block taxes You continue to pay the nanny to care for the children while you are ill. Free h&r block taxes Your absence is not a short, temporary absence, and your expenses are not considered work-related. Free h&r block taxes Part-time work. Free h&r block taxes   If you work part-time, you generally must figure your expenses for each day. Free h&r block taxes 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. Free h&r block taxes Any day when you work at least 1 hour is a day of work. Free h&r block taxes Example 1. Free h&r block taxes You work 3 days a week. Free h&r block taxes While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Free h&r block taxes You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Free h&r block taxes Your child attends the center 5 days a week. Free h&r block taxes Your work-related expenses are limited to $150 a week. Free h&r block taxes Example 2. Free h&r block taxes The facts are the same as in Example 1 except the center does not offer a 3-day option. Free h&r block taxes The entire $250 weekly fee may be a work-related expense. Free h&r block taxes Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Free h&r block taxes You do not have to choose the least expensive way of providing the care. Free h&r block taxes 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. Free h&r block taxes Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Free h&r block taxes Expenses for household services qualify if part of the services is for the care of qualifying persons. Free h&r block taxes See Household Services, later. Free h&r block taxes Expenses not for care. Free h&r block taxes   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Free h&r block taxes 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. Free h&r block taxes Otherwise, see the discussion of Expenses partly work-related, later. Free h&r block taxes   Child support payments are not for care and do not qualify for the credit. Free h&r block taxes Education. Free h&r block taxes   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Free h&r block taxes   Expenses to attend kindergarten or a higher grade are not expenses for care. Free h&r block taxes Do not use these expenses to figure your credit. Free h&r block taxes   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Free h&r block taxes   Summer school and tutoring programs are not for care. Free h&r block taxes Example 1. Free h&r block taxes 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. Free h&r block taxes The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Free h&r block taxes You can count the total cost when you figure the credit. Free h&r block taxes Example 2. Free h&r block taxes You place your 10-year-old child in a boarding school so you can work full time. Free h&r block taxes Only the part of the boarding school expense that is for the care of your child is a work-related expense. Free h&r block taxes You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Free h&r block taxes You cannot count any part of the amount you pay the school for your child's education. Free h&r block taxes Care outside your home. Free h&r block taxes   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. Free h&r block taxes Dependent care center. Free h&r block taxes   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. Free h&r block taxes   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. Free h&r block taxes Camp. Free h&r block taxes   The cost of sending your child to an overnight camp is not considered a work-related expense. Free h&r block taxes    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. Free h&r block taxes Transportation. Free h&r block taxes   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. Free h&r block taxes This includes transportation by bus, subway, taxi, or private car. Free h&r block taxes However, transportation not provided by a care provider is not for the care of a qualifying person. Free h&r block taxes 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. Free h&r block taxes Fees and deposits. Free h&r block taxes   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. Free h&r block taxes However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Free h&r block taxes Example 1. Free h&r block taxes 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. Free h&r block taxes The fee you paid is a work-related expense. Free h&r block taxes Example 2. Free h&r block taxes You placed a deposit with a preschool to reserve a place for your 3-year-old child. Free h&r block taxes You later sent your child to a different preschool and forfeited the deposit. Free h&r block taxes The forfeited deposit is not for care and so is not a work-related expense. Free h&r block taxes 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. Free h&r block taxes Definition. Free h&r block taxes   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Free h&r block taxes They include the services of a housekeeper, maid, or cook. Free h&r block taxes However, they do not include the services of a chauffeur, bartender, or gardener. Free h&r block taxes Housekeeper. Free h&r block taxes   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Free h&r block taxes Expenses partly work-related. Free h&r block taxes   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. Free h&r block taxes To figure your credit, count only the part that is work-related. Free h&r block taxes However, you do not have to divide the expense if only a small part is for other purposes. Free h&r block taxes Example. Free h&r block taxes You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. Free h&r block taxes The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. Free h&r block taxes You do not have to divide the expenses. Free h&r block taxes You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. Free h&r block taxes 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. Free h&r block taxes However, the dollar limit (discussed later) is based on one qualifying person, not two. Free h&r block taxes Meals and lodging provided for housekeeper. Free h&r block taxes   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. Free h&r block taxes If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. Free h&r block taxes Example. Free h&r block taxes To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. Free h&r block taxes You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. Free h&r block taxes However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. Free h&r block taxes Taxes paid on wages. Free h&r block taxes   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Free h&r block taxes For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes Joint Return Test Generally, married couples must file a joint return to take the credit. Free h&r block taxes 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. Free h&r block taxes Legally separated. Free h&r block taxes   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Free h&r block taxes You may be eligible to take the credit on your return using head of household filing status. Free h&r block taxes Married and living apart. Free h&r block taxes   You are not considered married and are eligible to take the credit if all the following apply. Free h&r block taxes You file a return apart from your spouse. Free h&r block taxes Your home is the home of a qualifying person for more than half the year. Free h&r block taxes You pay more than half the cost of keeping up your home for the year. Free h&r block taxes Your spouse does not live in your home for the last 6 months of the year. Free h&r block taxes Costs of keeping up a home. Free h&r block taxes   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. Free h&r block taxes   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Free h&r block taxes   They also do not include the purchase, permanent improvement, or replacement of property. Free h&r block taxes For example, you cannot include the cost of replacing a water heater. Free h&r block taxes However, you can include the cost of repairing a water heater. Free h&r block taxes Death of spouse. Free h&r block taxes   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. Free h&r block taxes If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. Free h&r block taxes Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Free h&r block taxes Use Form 2441, Part I, to show the information. Free h&r block taxes 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). Free h&r block taxes Information needed. Free h&r block taxes   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Free h&r block taxes    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Free h&r block taxes If the care provider is an organization, then it is the employer identification number (EIN). Free h&r block taxes   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). Free h&r block taxes In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Free h&r block taxes   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. Free h&r block taxes Getting the information. Free h&r block taxes    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. Free h&r block taxes 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. Free h&r block taxes    You should keep this information with your tax records. Free h&r block taxes Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Free h&r block taxes Due diligence. Free h&r block taxes   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Free h&r block taxes However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Free h&r block taxes   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. Free h&r block taxes Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Free h&r block taxes Provider refusal. Free h&r block taxes    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). Free h&r block taxes Enter “See Attached Statement” in the columns calling for the information you do not have. Free h&r block taxes Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Free h&r block taxes Be sure to write your name and social security number on this statement. Free h&r block taxes The statement will show that you used due diligence in trying to furnish the necessary information. Free h&r block taxes U. Free h&r block taxes S. Free h&r block taxes citizens and resident aliens living abroad. Free h&r block taxes   If you are living abroad, your care provider may not have, and may not be required to get, a U. Free h&r block taxes S. Free h&r block taxes taxpayer identification number (for example, an SSN or an EIN). Free h&r block taxes If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Free h&r block taxes How To Figure the Credit Your credit is a percentage of your work-related expenses. Free h&r block taxes Your expenses are subject to the earned income limit and the dollar limit. Free h&r block taxes The percentage is based on your adjusted gross income. Free h&r block taxes Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Free h&r block taxes Expenses prepaid in an earlier year. Free h&r block taxes   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Free h&r block taxes Claim the expenses for the later year as if they were actually paid in that later year. Free h&r block taxes Expenses not paid until the following year. Free h&r block taxes   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Free h&r block taxes You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Free h&r block taxes See Payments for prior year's expenses under Amount of Credit, later. Free h&r block taxes If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Free h&r block taxes You may be able to claim a credit for them on your 2014 return. Free h&r block taxes Expenses reimbursed. Free h&r block taxes   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. Free h&r block taxes Example. Free h&r block taxes You paid work-related expenses of $3,000. Free h&r block taxes You are reimbursed $2,000 by a state social services agency. Free h&r block taxes You can use only $1,000 to figure your credit. Free h&r block taxes Medical expenses. Free h&r block taxes   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. Free h&r block taxes You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Free h&r block taxes   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. Free h&r block taxes However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Free h&r block taxes For information on medical expenses, see Publication 502, Medical and Dental Expenses. Free h&r block taxes    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Free h&r block taxes Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Free h&r block taxes See Reduced Dollar Limit, later. Free h&r block taxes But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Free h&r block taxes Dependent care benefits. Free h&r block taxes    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. Free h&r block taxes Your salary may have been reduced to pay for these benefits. Free h&r block taxes If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. Free h&r block taxes See Statement for employee, later. Free h&r block taxes Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Free h&r block taxes   Enter the amount of these benefits on Form 2441, Part III, line 12. Free h&r block taxes Exclusion or deduction. Free h&r block taxes   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Free h&r block taxes Your employer can tell you whether your benefit plan qualifies. Free h&r block taxes To claim the exclusion, you must complete Part III of Form 2441. Free h&r block taxes You cannot use Form 1040EZ. Free h&r block taxes   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Free h&r block taxes Therefore, you would not get an exclusion from wages. Free h&r block taxes Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Free h&r block taxes To claim the deduction, you must use Form 2441. Free h&r block taxes   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). Free h&r block taxes   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. Free h&r block taxes    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. Free h&r block taxes Statement for employee. Free h&r block taxes   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. Free h&r block taxes Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Free h&r block taxes Effect of exclusion on credit. Free h&r block taxes   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. Free h&r block taxes 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. Free h&r block taxes Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. Free h&r block taxes 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. Free h&r block taxes Example. Free h&r block taxes You remarried on December 3. Free h&r block taxes Your earned income for the year was $18,000. Free h&r block taxes Your new spouse's earned income for the year was $2,000. Free h&r block taxes You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. Free h&r block taxes 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). Free h&r block taxes Separated spouse. Free h&r block taxes   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. Free h&r block taxes Use only your income in figuring the earned income limit. Free h&r block taxes Surviving spouse. Free h&r block taxes   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. Free h&r block taxes Community property laws. Free h&r block taxes   Disregard community property laws when you figure earned income for this credit. Free h&r block taxes Self-employment earnings. Free h&r block taxes   If you are self-employed, include your net earnings in earned income. Free h&r block taxes 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. Free h&r block taxes Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. Free h&r block taxes Clergy or church employee. Free h&r block taxes   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. Free h&r block taxes Statutory employee. Free h&r block taxes   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). Free h&r block taxes Net loss. Free h&r block taxes   You must reduce your earned income by any net loss from self-employment. Free h&r block taxes Optional method if earnings are low or a net loss. Free h&r block taxes   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. Free h&r block taxes Get Publication 334, Tax Guide for Small Business, for details. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes You or your spouse is a student or not able to care for self. Free h&r block taxes   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Free h&r block taxes 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. Free h&r block taxes Spouse works. Free h&r block taxes   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Free h&r block taxes Spouse qualifies for part of month. Free h&r block taxes   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. Free h&r block taxes You are a student or not able to care for self. Free h&r block taxes   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. Free h&r block taxes 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). Free h&r block taxes If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Free h&r block taxes Both spouses qualify. Free h&r block taxes   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. Free h&r block taxes Example. Free h&r block taxes Jim works and keeps up a home for himself and his wife Sharon. Free h&r block taxes Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. Free h&r block taxes During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. Free h&r block taxes These expenses also qualify as medical expenses. Free h&r block taxes Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. Free h&r block taxes Jim and Sharon's earned income limit is the smallest of the following amounts. Free h&r block taxes   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. Free h&r block taxes However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. Free h&r block taxes Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Free h&r block taxes This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Free h&r block taxes If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Free h&r block taxes This limit does not need to be divided equally among them. Free h&r block taxes 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. Free h&r block taxes Yearly limit. Free h&r block taxes   The dollar limit is a yearly limit. Free h&r block taxes The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Free h&r block taxes Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Free h&r block taxes Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Free h&r block taxes Example 1. Free h&r block taxes You pay $500 a month for after-school care for your son. Free h&r block taxes He turned 13 on May 1 and is no longer a qualifying person. Free h&r block taxes 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. Free h&r block taxes Example 2. Free h&r block taxes 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. Free h&r block taxes You paid $300 per month for the childcare. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes Your reduced dollar limit is figured on Form 2441, Part III. Free h&r block taxes See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. Free h&r block taxes Example 1. Free h&r block taxes George is a widower with one child and earns $24,000 a year. Free h&r block taxes 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. Free h&r block taxes His employer pays an additional $1,000 under a qualified dependent care benefit plan. Free h&r block taxes This $1,000 is excluded from George's income. Free h&r block taxes 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. Free h&r block taxes This is because his dollar limit is reduced as shown next. Free h&r block taxes   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. Free h&r block taxes Randall is married and both he and his wife are employed. Free h&r block taxes Each has earned income in excess of $6,000. Free h&r block taxes They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Free h&r block taxes Randall's work-related expenses are $6,000 for the year. Free h&r block taxes 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. Free h&r block taxes Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Free h&r block taxes 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. Free h&r block taxes This is because his dollar limit is reduced as shown next. Free h&r block taxes   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. Free h&r block taxes This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Free h&r block taxes The following table shows the percentage to use based on adjusted gross income. Free h&r block taxes   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. Free h&r block taxes You should show the expenses for each person on Form 2441, line 2, column (c). Free h&r block taxes However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. Free h&r block taxes You should list -0- for the one person and the actual amount for the second person. Free h&r block taxes 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. Free h&r block taxes Example. Free h&r block taxes Roger and Megan Paris have two qualifying children. Free h&r block taxes 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. Free h&r block taxes They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). Free h&r block taxes Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. Free h&r block taxes Line 30 tells them to complete line 2 without including any dependent care benefits. Free h&r block taxes They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. Free h&r block taxes 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. Free h&r block taxes 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. Free h&r block taxes However, their son James has special needs and they paid $18,500 for his care. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes Payments for prior year's expenses. Free h&r block taxes   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. Free h&r block taxes Attach a statement to your form showing how you figured the additional amount from 2012. Free h&r block taxes 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. Free h&r block taxes Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. Free h&r block taxes Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. Free h&r block taxes See Worksheet A. Free h&r block taxes Example. Free h&r block taxes In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Free h&r block taxes Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. Free h&r block taxes Their adjusted gross income for 2012 was $30,000. Free h&r block taxes Sam's earned income of $14,000 was less than Kate's earned income. Free h&r block taxes A credit for their 2012 expenses paid in 2013 is not allowed in 2012. Free h&r block taxes It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. Free h&r block taxes The filled-in Worksheet A they used to figure this credit is shown later. Free h&r block taxes 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. Free h&r block taxes They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. Free h&r block taxes Worksheet A. Free h&r block taxes Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Free h&r block taxes 1. Free h&r block taxes   Enter your 2012 qualified expenses paid in 2012 1. Free h&r block taxes     2. Free h&r block taxes   Enter your 2012 qualified expenses paid in 2013 2. Free h&r block taxes     3. Free h&r block taxes   Add the amounts on lines 1 and 2 3. Free h&r block taxes     4. Free h&r block taxes   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Free h&r block taxes     5. Free h&r block taxes   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Free h&r block taxes     6. Free h&r block taxes   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Free h&r block taxes     7. Free h&r block taxes   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Free h&r block taxes     8. Free h&r block taxes   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Free h&r block taxes     9. Free h&r block taxes   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Free h&r block taxes     10. Free h&r block taxes   Subtract the amount on line 9 from the amount on line 8 and enter the result. Free h&r block taxes If zero or less, stop here. Free h&r block taxes You cannot increase your 2013 credit by any previous year's expenses 10. Free h&r block taxes     11. Free h&r block taxes   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Free h&r block taxes     12. Free h&r block taxes   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Free h&r block taxes             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . Free h&r block taxes 35                 15,000 — 17,000     . Free h&r block taxes 34                 17,000 — 19,000     . Free h&r block taxes 33                 19,000 — 21,000     . Free h&r block taxes 32                 21,000 — 23,000     . Free h&r block taxes 31                 23,000 — 25,000     . Free h&r block taxes 30                 25,000 — 27,000     . Free h&r block taxes 29                 27,000 — 29,000     . Free h&r block taxes 28                 29,000 — 31,000     . Free h&r block taxes 27                 31,000 — 33,000     . Free h&r block taxes 26                 33,000 — 35,000     . Free h&r block taxes 25                 35,000 — 37,000     . Free h&r block taxes 24                 37,000 — 39,000     . Free h&r block taxes 23                 39,000 — 41,000     . Free h&r block taxes 22                 41,000 — 43,000     . Free h&r block taxes 21                 43,000 — No limit     . Free h&r block taxes 20           13. Free h&r block taxes   Multiply line 10 by line 12. Free h&r block taxes Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Free h&r block taxes 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. Free h&r block taxes       Worksheet A. Free h&r block taxes 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. Free h&r block taxes 1. Free h&r block taxes   Enter your 2012 qualified expenses paid in 2012 1. Free h&r block taxes   $2,000 2. Free h&r block taxes   Enter your 2012 qualified expenses paid in 2013 2. Free h&r block taxes   600 3. Free h&r block taxes   Add the amounts on lines 1 and 2 3. Free h&r block taxes   2,600 4. Free h&r block taxes   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Free h&r block taxes   3,000 5. Free h&r block taxes   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Free h&r block taxes   0 6. Free h&r block taxes   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Free h&r block taxes   3,000 7. Free h&r block taxes   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Free h&r block taxes   14,000 8. Free h&r block taxes   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Free h&r block taxes   2,600 9. Free h&r block taxes   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Free h&r block taxes   2,000 10. Free h&r block taxes   Subtract the amount on line 9 from the amount on line 8 and enter the result. Free h&r block taxes If zero or less, stop here. Free h&r block taxes You cannot increase your 2013 credit by any previous year's expenses 10. Free h&r block taxes   600 11. Free h&r block taxes   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Free h&r block taxes   30,000 12. Free h&r block taxes   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Free h&r block taxes   . Free h&r block taxes 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . Free h&r block taxes 35                 15,000 — 17,000     . Free h&r block taxes 34                 17,000 — 19,000     . Free h&r block taxes 33                 19,000 — 21,000     . Free h&r block taxes 32                 21,000 — 23,000     . Free h&r block taxes 31                 23,000 — 25,000     . Free h&r block taxes 30                 25,000 — 27,000     . Free h&r block taxes 29                 27,000 — 29,000     . Free h&r block taxes 28                 29,000 — 31,000     . Free h&r block taxes 27                 31,000 — 33,000     . Free h&r block taxes 26                 33,000 — 35,000     . Free h&r block taxes 25                 35,000 — 37,000     . Free h&r block taxes 24                 37,000 — 39,000     . Free h&r block taxes 23                 39,000 — 41,000     . Free h&r block taxes 22                 41,000 — 43,000     . Free h&r block taxes 21                 43,000 — No limit     . Free h&r block taxes 20           13. Free h&r block taxes   Multiply line 10 by line 12. Free h&r block taxes Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Free h&r block taxes 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. Free h&r block taxes   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. Free h&r block taxes You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Free h&r block taxes Form 1040, Form 1040A, or Form 1040NR. Free h&r block taxes    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. Free h&r block taxes Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. Free h&r block taxes Limit on credit. Free h&r block taxes    The amount of credit you can claim is limited to your tax. Free h&r block taxes For more information, see the Instructions for Form 2441. Free h&r block taxes Tax credit not refundable. Free h&r block taxes   You cannot get a refund for any part of the credit that is more than this limit. Free h&r block taxes Recordkeeping. Free h&r block taxes You should keep records of your work-related expenses. Free h&r block taxes 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. Free h&r block taxes Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. Free h&r block taxes 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. Free h&r block taxes If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Free h&r block taxes If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Free h&r block taxes Self-employed persons who are in business for themselves are not household employees. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes This control could include providing rules of conduct and appearance and requiring regular reports. Free h&r block taxes In this case, you do not have to pay employment taxes. Free h&r block taxes 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. Free h&r block taxes If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Free h&r block taxes Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Free h&r block taxes Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Free h&r block taxes Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Free h&r block taxes For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Free h&r block taxes State employment tax. Free h&r block taxes   You may also have to pay state unemployment tax. Free h&r block taxes Contact your state unemployment tax office for information. Free h&r block taxes You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. Free h&r block taxes For a list of state unemployment tax agencies, visit the U. Free h&r block taxes S. Free h&r block taxes Department of Labor's website. Free h&r block taxes To find that website, use the link in Publication 926 or search online. Free h&r block taxes 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. Free h&r block taxes Free help with your tax return. Free h&r block taxes   You can get free help preparing your return nationwide from IRS-certified volunteers. Free h&r block taxes The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Free h&r block taxes The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Free h&r block taxes 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. Free h&r block taxes In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Free h&r block taxes To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Free h&r block taxes gov, download the IRS2Go app, or call 1-800-906-9887. Free h&r block taxes   As part of the TCE program, AARP offers the Tax-Aide counseling program. Free h&r block taxes To find the nearest AARP Tax-Aide site, visit AARP's website at www. Free h&r block taxes aarp. Free h&r block taxes org/money/taxaide or call 1-888-227-7669. Free h&r block taxes For more information on these programs, go to IRS. Free h&r block taxes gov and enter “VITA” in the search box. Free h&r block taxes Internet. Free h&r block taxes    IRS. Free h&r block taxes gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Free h&r block taxes Download the free IRS2Go app from the iTunes app store or from Google Play. Free h&r block taxes 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. Free h&r block taxes Check the status of your 2013 refund with the Where's My Refund? application on IRS. Free h&r block taxes gov or download the IRS2Go app and select the Refund Status option. Free h&r block taxes The IRS issues more than 9 out of 10 refunds in less than 21 days. Free h&r block taxes 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. Free h&r block taxes You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Free h&r block taxes The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Free h&r block taxes Use the Interactive Tax Assistant (ITA) to research your tax questions. Free h&r block taxes No need to wait on the phone or stand in line. Free h&r block taxes 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. Free h&r block taxes When you reach the response screen, you can print the entire interview and the final response for your records. Free h&r block taxes New subject areas are added on a regular basis. Free h&r block taxes  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Free h&r block taxes gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Free h&r block taxes You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Free h&r block taxes The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Free h&r block taxes 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. Free h&r block taxes 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. Free h&r block taxes You can also ask the IRS to mail a return or an account transcript to you. Free h&r block taxes Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Free h&r block taxes gov or by calling 1-800-908-9946. Free h&r block taxes Tax return and tax account transcripts are generally available for the current year and the past three years. Free h&r block taxes Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Free h&r block taxes Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Free h&r block taxes 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. Free h&r block taxes Check the status of your amended return using Where's My Amended Return? Go to IRS. Free h&r block taxes gov and enter Where's My Amended Return? in the search box. Free h&r block taxes You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Free h&r block taxes It can take up to 3 weeks from the date you mailed it to show up in our system. Free h&r block taxes Make a payment using one of several safe and convenient electronic payment options available on IRS. Free h&r block taxes gov. Free h&r block taxes Select the Payment tab on the front page of IRS. Free h&r block taxes gov for more information. Free h&r block taxes Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Free h&r block taxes Figure your income tax withholding with the IRS Withholding Calculator on IRS. Free h&r block taxes gov. Free h&r block taxes 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. Free h&r block taxes Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Free h&r block taxes gov. Free h&r block taxes Request an Electronic Filing PIN by going to IRS. Free h&r block taxes gov and entering Electronic Filing PIN in the search box. Free h&r block taxes Download forms, instructions and publications, including accessible versions for people with disabilities. Free h&r block taxes Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Free h&r block taxes gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Free h&r block taxes An employee can answer questions about your tax account or help you set up a payment plan. Free h&r block taxes Before you visit, check the Office Locator on IRS. Free h&r block taxes gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Free h&r block taxes If you have a special need, such as a disability, you can request an appointment. Free h&r block taxes Call the local number listed in the Office Locator, or look in the phone book under Unit
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This notice is given under the Privacy Act of 1974 and the Paperwork Reduction Act of 1995. The Privacy Act and Paperwork Reduction Act requires that the Internal Revenue Service inform businesses and other entities the following when asking for information.

The information on this form will carry out the Internal Revenue laws of the United States. We will comply with Internal Revenue Code (IRC) section 6109 and the regulations hereunder, which generally require the inclusion of an Employer Identification Number (EIN) on certain returns, statements, or other documents filed with the Internal Revenue Service. Information on this form may be used to determine which Federal tax returns are required to file and to provide related forms and publications. This Form will be disclosed to the Social Security Administration for their use in determining compliance with applicable laws. An EIN will not be issued unless you provide all of the requested information, which applies to your entity.

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Note: This page contains one or more references to the Internal Revenue Code (IRC), Treasury Regulations, court cases, or other official tax guidance. References to these legal authorities are included for the convenience of those who would like to read the technical reference material. To access the applicable IRC sections, Treasury Regulations, or other official tax guidance, visit the Tax Code, Regulations, and Official Guidance page. To access any Tax Court case opinions issued after September 24, 1995, visit the Opinions Search page of the United States Tax Court.

Page Last Reviewed or Updated: 27-Nov-2013

The Free H&r Block Taxes

Free h&r block taxes Index Symbols 403(b) plans, 403(b) Plans A Accounting methods, Nonaccrual-Experience Method Acquisition date: Special depreciation allowance, Acquisition date test. Free h&r block taxes Special Liberty Zone depreciation allowance, Acquisition date test. Free h&r block taxes Annuities, tax-sheltered 403(b) plans, 403(b) Plans Assistance (see Tax help) Automobile (see Passenger automobile) B Bonds: New York Liberty, Tax Incentives for New York Liberty Zone Qualified zone academy, Issuance of Qualified Zone Academy Bonds C Car (see Passenger automobile) Car expenses, Car Expenses Catch-up contributions, 403(b), 403(b) Plans Child and dependent care, Child and Dependent Care Expenses Church employees and ministers, Years of service for church employees and ministers. Free h&r block taxes Clean-fuel vehicle, Electric and Clean-Fuel Vehicles Comments, Comments and suggestions. Free h&r block taxes Credit: Child and dependent care, Child and Dependent Care Expenses Credit for pension plan startup, Credit For Pension Plan Startup Costs Electric vehicles, Electric and Clean-Fuel Vehicles Indian employment, Indian Employment Credit Extended Renewable electricity production, Renewable Electricity Production Credit Welfare-to-work, Welfare-to-Work Credit Extended Work opportunity, Work Opportunity Credit Expanded in New York Liberty Zone , Work Opportunity Credit Extended D Deduction limit, automobile, Passenger Automobiles Deemed IRAs, Deemed IRAs Depletion, Depletion Depreciation: New property, Special Depreciation Allowance Property on reservations, Depreciation of Property Used on Indian Reservations Special depreciation allowance, Special Depreciation Allowance Special Liberty Zone depreciation allowance, Special Liberty Zone Depreciation Allowance Supplement to Publication 946, Depreciation E Election: Deemed not to claim special allowance, Deemed election. Free h&r block taxes Not to claim special allowance, Election Not To Claim the Allowance Not to claim special Liberty Zone allowance, Election Not To Claim the Liberty Zone Allowance Electric vehicle, Electric and Clean-Fuel Vehicles Eligible educator, Deduction for Educator Expenses Estimated tax payments, Adjusting your withholding or estimated tax payments for 2002. Free h&r block taxes Excepted property: Special depreciation allowance, Excepted Property Special Liberty Zone depreciation allowance, Excepted property. Free h&r block taxes F Foreign missionaries, Foreign missionaries. Free h&r block taxes Form 1099, Electronic Form 1099 Free tax services, How To Get Tax Help H Help (see Tax help) I Indian employment credit, Indian Employment Credit Extended Indian reservations, depreciation rules, Depreciation of Property Used on Indian Reservations IRAs, Deemed IRAs L Leasehold improvement property, defined, Qualified leasehold improvement property. Free h&r block taxes Liberty Zone leasehold improvement property: Defined, Qualified New York Liberty Zone leasehold improvement property. Free h&r block taxes Depreciated as 5-year property, Liberty Zone Leasehold Improvement Property Returns filed before June 1, 2002, Returns Filed Before June 1, 2002 Liberty Zone property: Increased section 179 dollar limit, Increased Dollar Limit Reduced section 179 dollar limit, Reduced Dollar Limit M Marginal production, Depletion More information (see Tax help) N Net operating losses, New 5-Year Carryback Rule for Net Operating Losses (NOLs), New 5-Year Carryback Rule for Net Operating Losses (NOLs) New York Liberty Zone: Area defined, New York Liberty Zone Benefits Leasehold improvement property, Liberty Zone Leasehold Improvement Property Section 179 deduction, Increased Section 179 Deduction Special depreciation, Special Liberty Zone Depreciation Allowance Tax incentives, Tax Incentives for New York Liberty Zone Work opportunity credit, Work Opportunity Credit Expanded in New York Liberty Zone NOLs, New 5-Year Carryback Rule for Net Operating Losses (NOLs), New 5-Year Carryback Rule for Net Operating Losses (NOLs) Nonaccrual-experience method, Nonaccrual-Experience Method Nonresidential real property, Nonresidential real property and residential rental property. Free h&r block taxes P Passenger automobile, limit on, Passenger Automobiles Pension plan startup costs, Credit For Pension Plan Startup Costs Placed in service date, Placed in service date test. Free h&r block taxes , Placed in service date test. Free h&r block taxes Plans, tax-sheltered annuities, 403(b) plans, 403(b) Plans Publications (see Tax help) Q Qualified leasehold improvement property, defined, Qualified leasehold improvement property. Free h&r block taxes Qualified Liberty Zone leasehold improvement property, Qualified New York Liberty Zone leasehold improvement property. Free h&r block taxes Qualified property: Increased section 179 deduction, Qualified property. Free h&r block taxes Special depreciation allowance, Qualified Property Special Liberty Zone depreciation allowance, Qualified Liberty Zone Property Qualified zone academy bonds, Issuance of Qualified Zone Academy Bonds R Recapture, section 179 deduction, Recapture Rules Renewable electricity, Renewable Electricity Production Credit Residential rental property, Nonresidential real property and residential rental property. Free h&r block taxes Rollovers, 403(b) plans, Rollovers to and from 403(b) plans. Free h&r block taxes S Section 1256 contracts, Wash Sale Rules Do Not Apply to Section 1256 Contracts Section 179 deduction: Increased dollar limit for Liberty Zone property, Increased Dollar Limit Reduced dollar limit for Liberty Zone property, Reduced Dollar Limit Returns filed before June 1, 2002, Returns Filed Before June 1, 2002 Simplified employee pensions (SEPs), Simplified Employee Pensions (SEPs) Special depreciation allowance: Election not to claim, Election Not To Claim the Allowance Excepted property, Excepted Property Qualified property, Qualified Property Requirements for claiming, Qualified Property Returns filed before June 1, 2002, Rules for Returns Filed Before June 1, 2002 Tests for qualification, Tests To Be Met Special Liberty Zone depreciation allowance: Election not to claim, Election Not To Claim the Liberty Zone Allowance Excepted property, Excepted property. Free h&r block taxes Qualified property, Qualified Liberty Zone Property Requirements for claiming, Qualified Liberty Zone Property Returns filed before June 1, 2002, Returns filed before June 1, 2002. Free h&r block taxes Tests for qualification, Tests to be met. Free h&r block taxes Substantial use, special Liberty Zone depreciation allowance, Substantial use test. Free h&r block taxes Suggestions, Comments and suggestions. Free h&r block taxes T Tax help, How To Get Tax Help Tax-sheltered annuity plans, 403(b) plans, 403(b) Plans Taxpayer Advocate, Contacting your Taxpayer Advocate. Free h&r block taxes Teachers, classroom materials, Deduction for Educator Expenses Tests for qualification, Tests To Be Met, Tests to be met. Free h&r block taxes TTY/TDD information, How To Get Tax Help W Wash sale rules, Wash Sale Rules Do Not Apply to Section 1256 Contracts Welfare-to-work credit, Welfare-to-Work Credit Extended Withholding, Adjusting your withholding or estimated tax payments for 2002. Free h&r block taxes Work opportunity credit, Work Opportunity Credit Expanded in New York Liberty Zone , Work Opportunity Credit Extended Y Years of service, church employees and ministers, Years of service for church employees and ministers. Free h&r block taxes Prev  Up     Home   More Online Publications