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Irs Form 1040x Amended Tax Return

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Irs Form 1040x Amended Tax Return

Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return The care must be for one or more qualifying persons who are identified on Form 2441. Irs form 1040x amended tax return (See Qualifying Person Test. Irs form 1040x amended tax return ) You (and your spouse if filing jointly) must have earned income during the year. Irs form 1040x amended tax return (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Irs form 1040x amended tax return ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Irs form 1040x amended tax return (See Work-Related Expense Test, later. Irs form 1040x amended tax return ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return See Payments to Relatives or Dependents under Work-Related Expense Test, later. Irs form 1040x amended tax return Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Irs form 1040x amended tax return If you are married, you must file a joint return, unless an exception applies to you. Irs form 1040x amended tax return See Joint Return Test, later. Irs form 1040x amended tax return You must identify the care provider on your tax return. Irs form 1040x amended tax return (See Provider Identification Test, later. Irs form 1040x amended tax return ) 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). Irs form 1040x amended tax return (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. Irs form 1040x amended tax return See Reduced Dollar Limit under How To Figure the Credit, later. Irs form 1040x amended tax return ) These tests are presented in Figure A and are also explained in detail in this publication. Irs form 1040x amended tax return Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Dependent defined. Irs form 1040x amended tax return   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Irs form 1040x amended tax return To be your dependent, a person must be your qualifying child (or your qualifying relative). Irs form 1040x amended tax return Qualifying child. Irs form 1040x amended tax return   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Irs form 1040x amended tax return More information. Irs form 1040x amended tax return   For more information about who is a dependent or a qualifying child, see Publication 501. Irs form 1040x amended tax return Physically or mentally not able to care for oneself. Irs form 1040x amended tax return   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Irs form 1040x amended tax return Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Irs form 1040x amended tax return Person qualifying for part of year. Irs form 1040x amended tax return   You determine a person's qualifying status each day. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Also see Yearly limit under Dollar Limit, later. Irs form 1040x amended tax return Birth or death of otherwise qualifying person. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Taxpayer identification number. Irs form 1040x amended tax return   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Irs form 1040x amended tax return If the correct information is not shown, the credit may be reduced or disallowed. Irs form 1040x amended tax return Individual taxpayer identification number (ITIN) for aliens. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return The ITIN is entered wherever an SSN is requested on a tax return. Irs form 1040x amended tax return If the alien does not have an ITIN, he or she must apply for one. Irs form 1040x amended tax return See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. Irs form 1040x amended tax return   An ITIN is for tax use only. Irs form 1040x amended tax return It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Irs form 1040x amended tax return S. Irs form 1040x amended tax return law. Irs form 1040x amended tax return Adoption taxpayer identification number (ATIN). Irs form 1040x amended tax return   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. Irs form 1040x amended tax return File Form W-7A, Application for Taxpayer Identification Number for Pending U. Irs form 1040x amended tax return S. Irs form 1040x amended tax return Adoptions. Irs form 1040x amended tax return Child of divorced or separated parents or parents living apart. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return For details and an exception for a parent who works at night, see Publication 501. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Please click here for the text description of the image. Irs form 1040x amended tax return Figure a. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Earned income. Irs form 1040x amended tax return   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Irs form 1040x amended tax return A net loss from self-employment reduces earned income. Irs form 1040x amended tax return Earned income also includes strike benefits and any disability pay you report as wages. Irs form 1040x amended tax return   Generally, only taxable compensation is included. Irs form 1040x amended tax return However, you can elect to include nontaxable combat pay in earned income. Irs form 1040x amended tax return If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Irs form 1040x amended tax return (In other words, if one of you makes the election, the other one can also make it but does not have to. Irs form 1040x amended tax return ) 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. Irs form 1040x amended tax return You should figure your credit both ways and make the election if it gives you a greater tax benefit. Irs form 1040x amended tax return    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. Irs form 1040x amended tax return Members of certain religious faiths opposed to social security. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. Irs form 1040x amended tax return For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs form 1040x amended tax return Form 4361. Irs form 1040x amended tax return   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. Irs form 1040x amended tax return This includes wages, salaries, tips, and other taxable employee compensation. Irs form 1040x amended tax return   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. Irs form 1040x amended tax return Examples include fees for performing marriages and honoraria for delivering speeches. Irs form 1040x amended tax return   Any amount you received for work that is not related to your ministerial duties is earned income. Irs form 1040x amended tax return Form 4029. Irs form 1040x amended tax return   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. Irs form 1040x amended tax return   However, amounts you received as a self-employed individual do not count as earned income. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return S. Irs form 1040x amended tax return trade or business, or Any amount received for work while an inmate in a penal institution. Irs form 1040x amended tax return Rule for student-spouse or spouse not able to care for self. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return (Your spouse also must live with you for more than half the year. Irs form 1040x amended tax return )   If you are filing a joint return, this rule also applies to you. Irs form 1040x amended tax return You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return   This rule applies to only one spouse for any one month. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Full-time student. Irs form 1040x amended tax return    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. Irs form 1040x amended tax return You must have been a full-time student for some part of each of 5 calendar months during the year. Irs form 1040x amended tax return (The months need not be consecutive. Irs form 1040x amended tax return ) School. Irs form 1040x amended tax return   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Irs form 1040x amended tax return A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Irs form 1040x amended tax return Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Irs form 1040x amended tax return Expenses are considered work-related only if both of the following are true. Irs form 1040x amended tax return They allow you (and your spouse if filing jointly) to work or look for work. Irs form 1040x amended tax return They are for a qualifying person's care. Irs form 1040x amended tax return Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Irs form 1040x amended tax return If you are married, generally both you and your spouse must work or look for work. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Your work can be for others or in your own business or partnership. Irs form 1040x amended tax return It can be either full time or part time. Irs form 1040x amended tax return Work also includes actively looking for work. Irs form 1040x amended tax return However, if you do not find a job and have no earned income for the year, you cannot take this credit. Irs form 1040x amended tax return See Earned Income Test, earlier. Irs form 1040x amended tax return An expense is not considered work-related merely because you had it while you were working. Irs form 1040x amended tax return The purpose of the expense must be to allow you to work. Irs form 1040x amended tax return Whether your expenses allow you to work or look for work depends on the facts. Irs form 1040x amended tax return Example 1. Irs form 1040x amended tax return The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Irs form 1040x amended tax return Example 2. Irs form 1040x amended tax return You work during the day. Irs form 1040x amended tax return Your spouse works at night and sleeps during the day. Irs form 1040x amended tax return You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Irs form 1040x amended tax return Your expenses are considered work-related. Irs form 1040x amended tax return Volunteer work. Irs form 1040x amended tax return   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Irs form 1040x amended tax return Work for part of year. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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). Irs form 1040x amended tax return Temporary absence from work. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Instead, you can figure your credit including the expenses you paid for the period of absence. Irs form 1040x amended tax return   An absence of 2 weeks or less is a short, temporary absence. Irs form 1040x amended tax return An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Irs form 1040x amended tax return You become ill and miss 4 months of work but receive sick pay. Irs form 1040x amended tax return You continue to pay the nanny to care for the children while you are ill. Irs form 1040x amended tax return Your absence is not a short, temporary absence, and your expenses are not considered work-related. Irs form 1040x amended tax return Part-time work. Irs form 1040x amended tax return   If you work part-time, you generally must figure your expenses for each day. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Any day when you work at least 1 hour is a day of work. Irs form 1040x amended tax return Example 1. Irs form 1040x amended tax return You work 3 days a week. Irs form 1040x amended tax return While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Irs form 1040x amended tax return You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Irs form 1040x amended tax return Your child attends the center 5 days a week. Irs form 1040x amended tax return Your work-related expenses are limited to $150 a week. Irs form 1040x amended tax return Example 2. Irs form 1040x amended tax return The facts are the same as in Example 1 except the center does not offer a 3-day option. Irs form 1040x amended tax return The entire $250 weekly fee may be a work-related expense. Irs form 1040x amended tax return Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Irs form 1040x amended tax return You do not have to choose the least expensive way of providing the care. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Irs form 1040x amended tax return Expenses for household services qualify if part of the services is for the care of qualifying persons. Irs form 1040x amended tax return See Household Services, later. Irs form 1040x amended tax return Expenses not for care. Irs form 1040x amended tax return   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Otherwise, see the discussion of Expenses partly work-related, later. Irs form 1040x amended tax return   Child support payments are not for care and do not qualify for the credit. Irs form 1040x amended tax return Education. Irs form 1040x amended tax return   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Irs form 1040x amended tax return   Expenses to attend kindergarten or a higher grade are not expenses for care. Irs form 1040x amended tax return Do not use these expenses to figure your credit. Irs form 1040x amended tax return   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Irs form 1040x amended tax return   Summer school and tutoring programs are not for care. Irs form 1040x amended tax return Example 1. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Irs form 1040x amended tax return You can count the total cost when you figure the credit. Irs form 1040x amended tax return Example 2. Irs form 1040x amended tax return You place your 10-year-old child in a boarding school so you can work full time. Irs form 1040x amended tax return Only the part of the boarding school expense that is for the care of your child is a work-related expense. Irs form 1040x amended tax return You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Irs form 1040x amended tax return You cannot count any part of the amount you pay the school for your child's education. Irs form 1040x amended tax return Care outside your home. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Dependent care center. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Camp. Irs form 1040x amended tax return   The cost of sending your child to an overnight camp is not considered a work-related expense. Irs form 1040x amended tax return    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. Irs form 1040x amended tax return Transportation. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return This includes transportation by bus, subway, taxi, or private car. Irs form 1040x amended tax return However, transportation not provided by a care provider is not for the care of a qualifying person. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Fees and deposits. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Irs form 1040x amended tax return Example 1. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return The fee you paid is a work-related expense. Irs form 1040x amended tax return Example 2. Irs form 1040x amended tax return You placed a deposit with a preschool to reserve a place for your 3-year-old child. Irs form 1040x amended tax return You later sent your child to a different preschool and forfeited the deposit. Irs form 1040x amended tax return The forfeited deposit is not for care and so is not a work-related expense. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Definition. Irs form 1040x amended tax return   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Irs form 1040x amended tax return They include the services of a housekeeper, maid, or cook. Irs form 1040x amended tax return However, they do not include the services of a chauffeur, bartender, or gardener. Irs form 1040x amended tax return Housekeeper. Irs form 1040x amended tax return   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Irs form 1040x amended tax return Expenses partly work-related. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return To figure your credit, count only the part that is work-related. Irs form 1040x amended tax return However, you do not have to divide the expense if only a small part is for other purposes. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. Irs form 1040x amended tax return The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. Irs form 1040x amended tax return You do not have to divide the expenses. Irs form 1040x amended tax return You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return However, the dollar limit (discussed later) is based on one qualifying person, not two. Irs form 1040x amended tax return Meals and lodging provided for housekeeper. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. Irs form 1040x amended tax return You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. Irs form 1040x amended tax return However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. Irs form 1040x amended tax return Taxes paid on wages. Irs form 1040x amended tax return   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Irs form 1040x amended tax return For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Joint Return Test Generally, married couples must file a joint return to take the credit. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Legally separated. Irs form 1040x amended tax return   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Irs form 1040x amended tax return You may be eligible to take the credit on your return using head of household filing status. Irs form 1040x amended tax return Married and living apart. Irs form 1040x amended tax return   You are not considered married and are eligible to take the credit if all the following apply. Irs form 1040x amended tax return You file a return apart from your spouse. Irs form 1040x amended tax return Your home is the home of a qualifying person for more than half the year. Irs form 1040x amended tax return You pay more than half the cost of keeping up your home for the year. Irs form 1040x amended tax return Your spouse does not live in your home for the last 6 months of the year. Irs form 1040x amended tax return Costs of keeping up a home. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Irs form 1040x amended tax return   They also do not include the purchase, permanent improvement, or replacement of property. Irs form 1040x amended tax return For example, you cannot include the cost of replacing a water heater. Irs form 1040x amended tax return However, you can include the cost of repairing a water heater. Irs form 1040x amended tax return Death of spouse. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. Irs form 1040x amended tax return Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Irs form 1040x amended tax return Use Form 2441, Part I, to show the information. Irs form 1040x amended tax return 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). Irs form 1040x amended tax return Information needed. Irs form 1040x amended tax return   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Irs form 1040x amended tax return    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Irs form 1040x amended tax return If the care provider is an organization, then it is the employer identification number (EIN). Irs form 1040x amended tax return   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). Irs form 1040x amended tax return In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Getting the information. Irs form 1040x amended tax return    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return    You should keep this information with your tax records. Irs form 1040x amended tax return Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Irs form 1040x amended tax return Due diligence. Irs form 1040x amended tax return   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Irs form 1040x amended tax return However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Irs form 1040x amended tax return Provider refusal. Irs form 1040x amended tax return    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). Irs form 1040x amended tax return Enter “See Attached Statement” in the columns calling for the information you do not have. Irs form 1040x amended tax return Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Irs form 1040x amended tax return Be sure to write your name and social security number on this statement. Irs form 1040x amended tax return The statement will show that you used due diligence in trying to furnish the necessary information. Irs form 1040x amended tax return U. Irs form 1040x amended tax return S. Irs form 1040x amended tax return citizens and resident aliens living abroad. Irs form 1040x amended tax return   If you are living abroad, your care provider may not have, and may not be required to get, a U. Irs form 1040x amended tax return S. Irs form 1040x amended tax return taxpayer identification number (for example, an SSN or an EIN). Irs form 1040x amended tax return If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Irs form 1040x amended tax return How To Figure the Credit Your credit is a percentage of your work-related expenses. Irs form 1040x amended tax return Your expenses are subject to the earned income limit and the dollar limit. Irs form 1040x amended tax return The percentage is based on your adjusted gross income. Irs form 1040x amended tax return Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Irs form 1040x amended tax return Expenses prepaid in an earlier year. Irs form 1040x amended tax return   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Irs form 1040x amended tax return Claim the expenses for the later year as if they were actually paid in that later year. Irs form 1040x amended tax return Expenses not paid until the following year. Irs form 1040x amended tax return   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Irs form 1040x amended tax return You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Irs form 1040x amended tax return See Payments for prior year's expenses under Amount of Credit, later. Irs form 1040x amended tax return If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Irs form 1040x amended tax return You may be able to claim a credit for them on your 2014 return. Irs form 1040x amended tax return Expenses reimbursed. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return You paid work-related expenses of $3,000. Irs form 1040x amended tax return You are reimbursed $2,000 by a state social services agency. Irs form 1040x amended tax return You can use only $1,000 to figure your credit. Irs form 1040x amended tax return Medical expenses. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Irs form 1040x amended tax return For information on medical expenses, see Publication 502, Medical and Dental Expenses. Irs form 1040x amended tax return    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Irs form 1040x amended tax return Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Irs form 1040x amended tax return See Reduced Dollar Limit, later. Irs form 1040x amended tax return But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Irs form 1040x amended tax return Dependent care benefits. Irs form 1040x amended tax return    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. Irs form 1040x amended tax return Your salary may have been reduced to pay for these benefits. Irs form 1040x amended tax return If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. Irs form 1040x amended tax return See Statement for employee, later. Irs form 1040x amended tax return Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Irs form 1040x amended tax return   Enter the amount of these benefits on Form 2441, Part III, line 12. Irs form 1040x amended tax return Exclusion or deduction. Irs form 1040x amended tax return   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Irs form 1040x amended tax return Your employer can tell you whether your benefit plan qualifies. Irs form 1040x amended tax return To claim the exclusion, you must complete Part III of Form 2441. Irs form 1040x amended tax return You cannot use Form 1040EZ. Irs form 1040x amended tax return   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Irs form 1040x amended tax return Therefore, you would not get an exclusion from wages. Irs form 1040x amended tax return Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Irs form 1040x amended tax return To claim the deduction, you must use Form 2441. Irs form 1040x amended tax return   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). Irs form 1040x amended tax return   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. Irs form 1040x amended tax return    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. Irs form 1040x amended tax return Statement for employee. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Irs form 1040x amended tax return Effect of exclusion on credit. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return You remarried on December 3. Irs form 1040x amended tax return Your earned income for the year was $18,000. Irs form 1040x amended tax return Your new spouse's earned income for the year was $2,000. Irs form 1040x amended tax return You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. Irs form 1040x amended tax return 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). Irs form 1040x amended tax return Separated spouse. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Use only your income in figuring the earned income limit. Irs form 1040x amended tax return Surviving spouse. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Community property laws. Irs form 1040x amended tax return   Disregard community property laws when you figure earned income for this credit. Irs form 1040x amended tax return Self-employment earnings. Irs form 1040x amended tax return   If you are self-employed, include your net earnings in earned income. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. Irs form 1040x amended tax return Clergy or church employee. Irs form 1040x amended tax return   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. Irs form 1040x amended tax return Statutory employee. Irs form 1040x amended tax return   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). Irs form 1040x amended tax return Net loss. Irs form 1040x amended tax return   You must reduce your earned income by any net loss from self-employment. Irs form 1040x amended tax return Optional method if earnings are low or a net loss. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Get Publication 334, Tax Guide for Small Business, for details. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return You or your spouse is a student or not able to care for self. Irs form 1040x amended tax return   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Spouse works. Irs form 1040x amended tax return   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Irs form 1040x amended tax return Spouse qualifies for part of month. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return You are a student or not able to care for self. Irs form 1040x amended tax return   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. Irs form 1040x amended tax return 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). Irs form 1040x amended tax return If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Irs form 1040x amended tax return Both spouses qualify. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return Jim works and keeps up a home for himself and his wife Sharon. Irs form 1040x amended tax return Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. Irs form 1040x amended tax return During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. Irs form 1040x amended tax return These expenses also qualify as medical expenses. Irs form 1040x amended tax return Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. Irs form 1040x amended tax return Jim and Sharon's earned income limit is the smallest of the following amounts. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. Irs form 1040x amended tax return Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Irs form 1040x amended tax return This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Irs form 1040x amended tax return If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Irs form 1040x amended tax return This limit does not need to be divided equally among them. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Yearly limit. Irs form 1040x amended tax return   The dollar limit is a yearly limit. Irs form 1040x amended tax return The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Irs form 1040x amended tax return Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Irs form 1040x amended tax return Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Irs form 1040x amended tax return Example 1. Irs form 1040x amended tax return You pay $500 a month for after-school care for your son. Irs form 1040x amended tax return He turned 13 on May 1 and is no longer a qualifying person. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Example 2. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return You paid $300 per month for the childcare. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Your reduced dollar limit is figured on Form 2441, Part III. Irs form 1040x amended tax return See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. Irs form 1040x amended tax return Example 1. Irs form 1040x amended tax return George is a widower with one child and earns $24,000 a year. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return His employer pays an additional $1,000 under a qualified dependent care benefit plan. Irs form 1040x amended tax return This $1,000 is excluded from George's income. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return This is because his dollar limit is reduced as shown next. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Randall is married and both he and his wife are employed. Irs form 1040x amended tax return Each has earned income in excess of $6,000. Irs form 1040x amended tax return They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Irs form 1040x amended tax return Randall's work-related expenses are $6,000 for the year. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return This is because his dollar limit is reduced as shown next. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Irs form 1040x amended tax return The following table shows the percentage to use based on adjusted gross income. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return You should show the expenses for each person on Form 2441, line 2, column (c). Irs form 1040x amended tax return However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. Irs form 1040x amended tax return You should list -0- for the one person and the actual amount for the second person. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return Roger and Megan Paris have two qualifying children. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). Irs form 1040x amended tax return Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. Irs form 1040x amended tax return Line 30 tells them to complete line 2 without including any dependent care benefits. Irs form 1040x amended tax return They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. Irs form 1040x amended tax return However, their son James has special needs and they paid $18,500 for his care. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Payments for prior year's expenses. Irs form 1040x amended tax return   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. Irs form 1040x amended tax return Attach a statement to your form showing how you figured the additional amount from 2012. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. Irs form 1040x amended tax return Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. Irs form 1040x amended tax return See Worksheet A. Irs form 1040x amended tax return Example. Irs form 1040x amended tax return In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Irs form 1040x amended tax return Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. Irs form 1040x amended tax return Their adjusted gross income for 2012 was $30,000. Irs form 1040x amended tax return Sam's earned income of $14,000 was less than Kate's earned income. Irs form 1040x amended tax return A credit for their 2012 expenses paid in 2013 is not allowed in 2012. Irs form 1040x amended tax return It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. Irs form 1040x amended tax return The filled-in Worksheet A they used to figure this credit is shown later. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. Irs form 1040x amended tax return Worksheet A. Irs form 1040x amended tax return Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Irs form 1040x amended tax return 1. Irs form 1040x amended tax return   Enter your 2012 qualified expenses paid in 2012 1. Irs form 1040x amended tax return     2. Irs form 1040x amended tax return   Enter your 2012 qualified expenses paid in 2013 2. Irs form 1040x amended tax return     3. Irs form 1040x amended tax return   Add the amounts on lines 1 and 2 3. Irs form 1040x amended tax return     4. Irs form 1040x amended tax return   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Irs form 1040x amended tax return     5. Irs form 1040x amended tax return   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Irs form 1040x amended tax return     6. Irs form 1040x amended tax return   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Irs form 1040x amended tax return     7. Irs form 1040x amended tax return   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Irs form 1040x amended tax return     8. Irs form 1040x amended tax return   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Irs form 1040x amended tax return     9. Irs form 1040x amended tax return   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Irs form 1040x amended tax return     10. Irs form 1040x amended tax return   Subtract the amount on line 9 from the amount on line 8 and enter the result. Irs form 1040x amended tax return If zero or less, stop here. Irs form 1040x amended tax return You cannot increase your 2013 credit by any previous year's expenses 10. Irs form 1040x amended tax return     11. Irs form 1040x amended tax return   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Irs form 1040x amended tax return     12. Irs form 1040x amended tax return   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Irs form 1040x amended tax return             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . Irs form 1040x amended tax return 35                 15,000 — 17,000     . Irs form 1040x amended tax return 34                 17,000 — 19,000     . Irs form 1040x amended tax return 33                 19,000 — 21,000     . Irs form 1040x amended tax return 32                 21,000 — 23,000     . Irs form 1040x amended tax return 31                 23,000 — 25,000     . Irs form 1040x amended tax return 30                 25,000 — 27,000     . Irs form 1040x amended tax return 29                 27,000 — 29,000     . Irs form 1040x amended tax return 28                 29,000 — 31,000     . Irs form 1040x amended tax return 27                 31,000 — 33,000     . Irs form 1040x amended tax return 26                 33,000 — 35,000     . Irs form 1040x amended tax return 25                 35,000 — 37,000     . Irs form 1040x amended tax return 24                 37,000 — 39,000     . Irs form 1040x amended tax return 23                 39,000 — 41,000     . Irs form 1040x amended tax return 22                 41,000 — 43,000     . Irs form 1040x amended tax return 21                 43,000 — No limit     . Irs form 1040x amended tax return 20           13. Irs form 1040x amended tax return   Multiply line 10 by line 12. Irs form 1040x amended tax return Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return       Worksheet A. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 1. Irs form 1040x amended tax return   Enter your 2012 qualified expenses paid in 2012 1. Irs form 1040x amended tax return   $2,000 2. Irs form 1040x amended tax return   Enter your 2012 qualified expenses paid in 2013 2. Irs form 1040x amended tax return   600 3. Irs form 1040x amended tax return   Add the amounts on lines 1 and 2 3. Irs form 1040x amended tax return   2,600 4. Irs form 1040x amended tax return   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Irs form 1040x amended tax return   3,000 5. Irs form 1040x amended tax return   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Irs form 1040x amended tax return   0 6. Irs form 1040x amended tax return   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Irs form 1040x amended tax return   3,000 7. Irs form 1040x amended tax return   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Irs form 1040x amended tax return   14,000 8. Irs form 1040x amended tax return   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Irs form 1040x amended tax return   2,600 9. Irs form 1040x amended tax return   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Irs form 1040x amended tax return   2,000 10. Irs form 1040x amended tax return   Subtract the amount on line 9 from the amount on line 8 and enter the result. Irs form 1040x amended tax return If zero or less, stop here. Irs form 1040x amended tax return You cannot increase your 2013 credit by any previous year's expenses 10. Irs form 1040x amended tax return   600 11. Irs form 1040x amended tax return   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Irs form 1040x amended tax return   30,000 12. Irs form 1040x amended tax return   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Irs form 1040x amended tax return   . Irs form 1040x amended tax return 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . Irs form 1040x amended tax return 35                 15,000 — 17,000     . Irs form 1040x amended tax return 34                 17,000 — 19,000     . Irs form 1040x amended tax return 33                 19,000 — 21,000     . Irs form 1040x amended tax return 32                 21,000 — 23,000     . Irs form 1040x amended tax return 31                 23,000 — 25,000     . Irs form 1040x amended tax return 30                 25,000 — 27,000     . Irs form 1040x amended tax return 29                 27,000 — 29,000     . Irs form 1040x amended tax return 28                 29,000 — 31,000     . Irs form 1040x amended tax return 27                 31,000 — 33,000     . Irs form 1040x amended tax return 26                 33,000 — 35,000     . Irs form 1040x amended tax return 25                 35,000 — 37,000     . Irs form 1040x amended tax return 24                 37,000 — 39,000     . Irs form 1040x amended tax return 23                 39,000 — 41,000     . Irs form 1040x amended tax return 22                 41,000 — 43,000     . Irs form 1040x amended tax return 21                 43,000 — No limit     . Irs form 1040x amended tax return 20           13. Irs form 1040x amended tax return   Multiply line 10 by line 12. Irs form 1040x amended tax return Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. Irs form 1040x amended tax return You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Irs form 1040x amended tax return Form 1040, Form 1040A, or Form 1040NR. Irs form 1040x amended tax return    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. Irs form 1040x amended tax return Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. Irs form 1040x amended tax return Limit on credit. Irs form 1040x amended tax return    The amount of credit you can claim is limited to your tax. Irs form 1040x amended tax return For more information, see the Instructions for Form 2441. Irs form 1040x amended tax return Tax credit not refundable. Irs form 1040x amended tax return   You cannot get a refund for any part of the credit that is more than this limit. Irs form 1040x amended tax return Recordkeeping. Irs form 1040x amended tax return You should keep records of your work-related expenses. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Irs form 1040x amended tax return If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Irs form 1040x amended tax return Self-employed persons who are in business for themselves are not household employees. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return This control could include providing rules of conduct and appearance and requiring regular reports. Irs form 1040x amended tax return In this case, you do not have to pay employment taxes. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Irs form 1040x amended tax return Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Irs form 1040x amended tax return Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Irs form 1040x amended tax return Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Irs form 1040x amended tax return For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Irs form 1040x amended tax return State employment tax. Irs form 1040x amended tax return   You may also have to pay state unemployment tax. Irs form 1040x amended tax return Contact your state unemployment tax office for information. Irs form 1040x amended tax return You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. Irs form 1040x amended tax return For a list of state unemployment tax agencies, visit the U. Irs form 1040x amended tax return S. Irs form 1040x amended tax return Department of Labor's website. Irs form 1040x amended tax return To find that website, use the link in Publication 926 or search online. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Free help with your tax return. Irs form 1040x amended tax return   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs form 1040x amended tax return The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs form 1040x amended tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs form 1040x amended tax return To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs form 1040x amended tax return gov, download the IRS2Go app, or call 1-800-906-9887. Irs form 1040x amended tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs form 1040x amended tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs form 1040x amended tax return aarp. Irs form 1040x amended tax return org/money/taxaide or call 1-888-227-7669. Irs form 1040x amended tax return For more information on these programs, go to IRS. Irs form 1040x amended tax return gov and enter “VITA” in the search box. Irs form 1040x amended tax return Internet. Irs form 1040x amended tax return    IRS. Irs form 1040x amended tax return gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs form 1040x amended tax return Download the free IRS2Go app from the iTunes app store or from Google Play. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs form 1040x amended tax return gov or download the IRS2Go app and select the Refund Status option. Irs form 1040x amended tax return The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs form 1040x amended tax return The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs form 1040x amended tax return Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs form 1040x amended tax return No need to wait on the phone or stand in line. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return When you reach the response screen, you can print the entire interview and the final response for your records. Irs form 1040x amended tax return New subject areas are added on a regular basis. Irs form 1040x amended tax return  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs form 1040x amended tax return gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs form 1040x amended tax return You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs form 1040x amended tax return The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return You can also ask the IRS to mail a return or an account transcript to you. Irs form 1040x amended tax return Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs form 1040x amended tax return gov or by calling 1-800-908-9946. Irs form 1040x amended tax return Tax return and tax account transcripts are generally available for the current year and the past three years. Irs form 1040x amended tax return Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs form 1040x amended tax return Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs form 1040x amended tax return gov and enter Where's My Amended Return? in the search box. Irs form 1040x amended tax return You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs form 1040x amended tax return It can take up to 3 weeks from the date you mailed it to show up in our system. Irs form 1040x amended tax return Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs form 1040x amended tax return gov. Irs form 1040x amended tax return Select the Payment tab on the front page of IRS. Irs form 1040x amended tax return gov for more information. Irs form 1040x amended tax return Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs form 1040x amended tax return Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs form 1040x amended tax return gov. Irs form 1040x amended tax return 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. Irs form 1040x amended tax return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs form 1040x amended tax return gov. Irs form 1040x amended tax return Request an Electronic Filing PIN by going to IRS. Irs form 1040x amended tax return gov and entering Electronic Filing PIN in the search box. Irs form 1040x amended tax return Download forms, instructions and publications, including accessible versions for people with disabilities. Irs form 1040x amended tax return Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs form 1040x amended tax return gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs form 1040x amended tax return An employee can answer questions about your tax account or help you set up a payment plan. Irs form 1040x amended tax return Before you visit, check the Office Locator on IRS. Irs form 1040x amended tax return gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs form 1040x amended tax return If you have a special need, such as a disability, you can request an appointment. Irs form 1040x amended tax return Call the local number listed in the Office Locator, or look in the phone book under Unit
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Understanding your CP259 Notice

We've sent you this notice because our records indicate you didn't file the required business tax return identified in the notice.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).
 


What you need to do

  • File your required business return immediately.
    • If eligible, file your return electronically with all required schedules, using your e-file provider, or
    • File a paper return with all required schedules
  • Complete the Response form enclosed with your notice and mail it to us, using the enclosed envelope:
    • To explain why you are filing late.
    • To explain why you don’t think you need to file.
    • If you have already filed and it's been more than four weeks, or if you used a different name or Employer ID number (EIN) than shown on the notice when filing.
  • If you have filed within the last four weeks using the same name and EIN shown on the notice, you may disregard this notice.

You may want to...

  • Review Tax Information for Businesses which provides information regarding various business filing issues.
  • Review your records and ensure all returns are filed timely.

Answers to Common Questions

Why did I receive multiple CP 259 notices?
If your business hasn't filed tax returns, a notice will be generated and mailed for each tax form and tax period the IRS shows as delinquent.

I have never had employees and or filed this return previously so why did I receive a notice requesting me to file?
When you apply for an Employer Identification number, filing requirements are established requiring specific types of returns to be filed (e.g. Form 940, Employer's Annual Federal Unemployment Tax Return; Form 941, Employer's Quarterly Federal Tax Return; Form 1120, U.S. Corporation Income Tax Return, etc.). When the return is not filed, the IRS considers it to be delinquent and generates a notice requesting the return be filed.

Do I still need to file a tax return even if I had no employees or business activity during the tax period(s) in question?
If you had no employees or business activity during a tax period you are not required to file a return for that tax period. You still need to respond to this notice. If you made Federal Tax Deposits or other payments or credits for the tax period, you must file a signed return showing the payments to get a refund.


Tips for next year

File all required returns by the appropriate due date.


Understanding your notice

Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP259, Page 1

Notice CP259, Page 2

Notice CP259, Page 3

Notice CP259, Page 4

Page Last Reviewed or Updated: 28-Mar-2014

The Irs Form 1040x Amended Tax Return

Irs form 1040x amended tax return Publication 557 - Additional Material Table of Contents Appendix. Irs form 1040x amended tax return Sample Articles of Organization, continued Organization Reference Chart Section of 1986 Code Description of organization General nature of activities Application  Form Annual return required to be  filed Contributions  allowable 501(c)(1) Corporations Organized under Act of Congress (including Federal Credit Unions) Instrumentalities of the  United States No Form None Yes, if made for exclusively public purposes 501(c)(2) Title Holding Corporation For Exempt Organization Holding title to property of an  exempt organization 1024 9901 or 990-EZ8 No2 501(c)(3) Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations Activities of nature implied by description of class of organization 1023 9901 or 990-EZ8, or 990-PF Yes, generally 501(c)(4) Civic Leagues, Social Welfare Organizations, and Local Associations of Employees Promotion of community welfare; charitable, educational, or recreational 1024 9901 or 990-EZ8 No, generally 2, 3 501(c)(5) Labor, Agricultural, and Horticultural Organizations Educational or instructive, the  purpose being to improve conditions of work, and to improve products of efficiency 1024 9901 or 990-EZ8 No2 501(c)(6) Business Leagues, Chambers of Commerce, Real Estate Boards, etc. Irs form 1040x amended tax return Improvement of business  conditions of one or more lines of business 1024 9901 or 990-EZ8 No2 501(c)(7) Social and Recreational Clubs Pleasure, recreation, social activities 1024 9901 or 990-EZ8 No2 501(c)(8) Fraternal Beneficiary Societies  and Associations Lodge providing for payment of life, sickness, accident or other benefits  to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. Irs form 1040x amended tax return 501(c)(3) purposes 501(c)(9) Voluntary Employees Beneficiary Associations Providing for payment of life, sickness, accident, or other benefits to members 1024 9901 or 990-EZ8 No2 501(c)(10) Domestic Fraternal Societies  and Associations Lodge devoting its net earnings to charitable, fraternal, and other  specified purposes. Irs form 1040x amended tax return No life, sickness, or accident benefits to members 1024 9901 or 990-EZ8 Yes, if for certain Sec. Irs form 1040x amended tax return 501(c)(3) purposes 501(c)(11) Teachers' Retirement Fund Associations Teachers' association for payment of retirement benefits Letter6 9901 or 990-EZ8 No2 501(c)(12) Benevolent Life Insurance Associations, Mutual Ditch or  Irrigation Companies, Mutual or Cooperative Telephone Companies, etc. Irs form 1040x amended tax return Activities of a mutually beneficial  nature similar to those implied by the description of class of organization 1024 9901 or 990-EZ8 No2 501(c)(13) Cemetery Companies Burials and incidental activities 1024 9901 or 990-EZ8 Yes, generally 501(c)(14) State-Chartered Credit Unions,  Mutual Reserve Funds Loans to members Letter6 9901 or 990-EZ8 No2 501(c)(15) Mutual Insurance Companies or Associations Providing insurance to members substantially at cost 1024 9901 or 990-EZ8 No2 501(c)(16) Cooperative Organizations to  Finance Crop Operations Financing crop operations in  conjunction with activities of a marketing  or purchasing association Form 1120-C6 9901 or 990-EZ8 No2 501(c)(17) Supplemental Unemployment  Benefit Trusts Provides for payment of  supplemental unemployment compensation benefits 1024 9901 or 990-EZ8 No2 501(c)(18) Employee Funded Pension Trust (created before June 25, 1959) Payment of benefits under a  pension plan funded by employees Letter6 9901 or 990-EZ8 No2 501(c)(19) Post or Organization of Past or  Present Members of the Armed Forces Activities implied by nature of organization 1024 9901 or 990-EZ8 No, generally7 501(c)(21) Black Lung Benefit Trusts Funded by coal mine operators to satisfy their liability for disability or  death due to black lung diseases Letter6 990-BL No4 501(c)(22) Withdrawal Liability Payment Fund To provide funds to meet the  liability of employers withdrawing from  a multi-employer pension fund Letter6 9901 or 990-EZ8 No5 501(c)(23) Veterans' Organization (created before 1880) To provide insurance and other  benefits to veterans Letter6 9901 or 990-EZ8 No, generally7 501(c)(25) Title Holding Corporations or Trusts with Multiple Parent Corporations Holding title and paying over  income from property to 35 or fewer parents or beneficiaries 1024 9901 or 990-EZ8 No 501(c)(26) State-Sponsored Organization Providing Health Coverage for High-Risk Individuals Provides health care coverage to high-risk individuals Letter6 9901 or 990-EZ8 No 501(c)(27) State-Sponsored Workers' Compensation Reinsurance Organization Reimburses members for losses  under workers' compensation acts Letter6 9901 or 990-EZ8 No 501(c)(28) National Railroad Retirement Investment Trust Manages and invests the assets of the Railroad Retirement Account No Form 99011 No11 501(c)(29) CO-OP health insurance issuers A qualified health insurance issuer which has received a loan or grant under the CO-OP program Letter and Form 871814 9901 No13 501(d) Religious and Apostolic Associations Regular business activities;  Communal religious community No Form 10659 No2 501(e) Cooperative Hospital Service Organizations Performs cooperative services for hospitals 1023 9901 or 990-EZ8 Yes 501(f) Cooperative Service Organizations  of Operating Educational Organizations Performs collective investment  services for educational organizations 1023 9901 or 990-EZ8 Yes 501(k) Child Care Organizations Provides care for children 1023 9901 or 990-EZ8 Yes 501(n) Charitable Risk Pools Pools certain insurance risks of sec. Irs form 1040x amended tax return 501(c)(3) organizations 1023 9901 or 990-EZ8 Yes 501(q) Credit Counseling Organization Credit counseling services 1023 102312 No 521(a) Farmers' Cooperative Associations Cooperative marketing and  purchasing for agricultural procedures 1028 1120-C No 527 Political organizations A party, committee, fund,  association, etc. Irs form 1040x amended tax return , that directly or indirectly accepts contributions or makes expenditures for political campaigns 8871 1120-POL10 9901 or 990-EZ8 No 1For exceptions to the filing requirement, see chapter 2 and the form instructions. Irs form 1040x amended tax return Note: For annual tax periods beginning after 2006, most tax-exempt organizations, other than churches, are required to file an annual Form 990, 990-EZ, or 990-PF with the IRS or to submit an annual electronic notice, Form 990-N (e-Postcard), to the IRS. Irs form 1040x amended tax return Tax-exempt organizations failing to file an annual return or submit an annual notice as required for 3 consecutive years will automatically lose their tax-exempt status. Irs form 1040x amended tax return    2An organization exempt under a subsection of section 501 other than 501(c)(3) can establish a charitable fund, contributions to which are deductible. Irs form 1040x amended tax return Such a fund must itself meet the requirements of section 501(c)(3) and the related notice requirements of section 508(a). Irs form 1040x amended tax return    3Contributions to volunteer fire companies and similar organizations are deductible, but only if made for exclusively public purposes. Irs form 1040x amended tax return    4Deductible as a business expense to the extent allowed by section 192. Irs form 1040x amended tax return    5Deductible as a business expense to the extent allowed by section 194A. Irs form 1040x amended tax return 6Application is by letter to the address shown on Form 8718. Irs form 1040x amended tax return A copy of the organizing document should be attached and the letter should be signed by an officer. Irs form 1040x amended tax return    7Contributions to these organizations are deductible only if 90% or more of the organization's members are war veterans. Irs form 1040x amended tax return    8For limits on the use of Form 990-EZ, see chapter 2 and the general instructions for Form 990-EZ (or Form 990). Irs form 1040x amended tax return    9Although the organization files a partnership return, all distributions are deemed dividends. Irs form 1040x amended tax return The members are not entitled to pass through treatment of the organization's income or expenses. Irs form 1040x amended tax return    10Form 1120-POL is required only if the organization has taxable income as defined in section 527(c). Irs form 1040x amended tax return    11Only required to annually file so much of the Form 990 that relates to the names and addresses of the officers, directors, trustees, and key employees, and their titles, compensation, and hours devoted to their positions (Part VII of Form 990), and to complete Item I in the Heading of Form 990 to confirm its tax-exempt status under section 501(c)(28). Irs form 1040x amended tax return    12See section 501(q) if the organization provides credit counseling services and seeks recognition of exemption under section 501(c)(4). Irs form 1040x amended tax return Use Form 1024 if applying for recognition under section 501(c)(4). Irs form 1040x amended tax return    13See section 501(c)(29) for details. Irs form 1040x amended tax return    14See Revenue Procedure 2012-11, sec. Irs form 1040x amended tax return 4. Irs form 1040x amended tax return 01, 2012-7 I. Irs form 1040x amended tax return R. Irs form 1040x amended tax return B. Irs form 1040x amended tax return 368, for details. Irs form 1040x amended tax return Appendix. Irs form 1040x amended tax return Sample Articles of Organization The following are examples of Articles of Incorporation (Draft A) and a declaration of trust (Draft B) that contain the required information as to purposes and powers of an organization and disposition of its assets upon dissolution. Irs form 1040x amended tax return You should bear in mind that requirements for these instruments may vary under applicable state law. Irs form 1040x amended tax return See Private Foundations and Public Charities , earlier for the special provisions required in a private foundation's governing instrument in order for it to qualify for exemption. Irs form 1040x amended tax return DRAFT A  Articles of Incorporation of the undersigned, a majority of whom are citizens of the United States, desiring to form a Non-Profit Corporation under the Non-Profit Corporation Law of , do hereby certify: First: The name of the Corporation shall be . Irs form 1040x amended tax return Second: The place in this state where the principal office of the Corporation is to be located is the City of , County. Irs form 1040x amended tax return Third: Said corporation is organized exclusively for charitable, religious, educational, and scientific purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs form 1040x amended tax return Fourth: The names and addresses of the persons who are the initial trustees of the corporation are as follows: Name , Address Fifth: No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article Third hereof. Irs form 1040x amended tax return No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Irs form 1040x amended tax return Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or (b) by a corporation, contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs form 1040x amended tax return   If reference to federal law in articles of incorporation imposes a limitation that is invalid in your state, you may wish to substitute the following for the last sentence of the preceding paragraph: “Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation. Irs form 1040x amended tax return ” Sixth: Upon the dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Irs form 1040x amended tax return Any such assets not so disposed of shall be disposed of by a Court of Competent Jurisdiction of the county in which the principal office of the corporation is then located, exclusively for such purposes or to such organization or organizations, as said Court shall determine, which are organized and operated exclusively for such purposes. Irs form 1040x amended tax return   In witness whereof, we have hereunto subscribed our names this day of , 20. Irs form 1040x amended tax return Appendix. Irs form 1040x amended tax return Sample Articles of Organization, continued Draft B The Charitable Trust. Irs form 1040x amended tax return Declaration of Trust made as of the day of , 20 , by , of , and , of , who hereby declare and agree that they have received this day from , as Donor, the sum of Ten Dollars ($10) and that they will hold and manage the same, and any additions to it, in trust, as follows: First: This trust shall be called “The Charitable Trust. Irs form 1040x amended tax return ” Second: The trustees may receive and accept property, whether real, personal, or mixed, by way of gift, bequest, or devise, from any person, firm, trust, or corporation, to be held, administered, and disposed of in accordance with and pursuant to the provisions of this Declaration of Trust; but no gift, bequest, or devise of any such property shall be received and accepted if it is conditioned or limited in such manner as to require the disposition of the income or its principal to any person or organization other than a “charitable organization” or for other than “charitable purposes” within the meaning of such terms as defined in Article Third of this Declaration of Trust, or as shall, in the opinion of the trustees, jeopardize the federal income tax exemption of this trust pursuant to section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs form 1040x amended tax return Third: a) The principal and income of all property received and accepted by the trustees to be administered under this Declaration of Trust shall be held in trust by them, and the trustees may make payments or distributions from income or principal, or both, to or for the use of such charitable organizations, within the meaning of that term as defined in paragraph C, in such amounts and for such charitable purposes of the trust as the trustees shall from time to time select and determine; and the trustees may make payments or distributions from income or principal, or both, directly for such charitable purposes, within the meaning of that term as defined in paragraph D, in such amounts as the trustees shall from time to time select and determine without making use of any other charitable organization. Irs form 1040x amended tax return The trustees may also make payments or distributions of all or any part of the income or principal to states, territories, or possessions of the United States, any political subdivision of any of the foregoing, or to the United States or the District of Columbia but only for charitable purposes within the meaning of that term as defined in paragraph D. Irs form 1040x amended tax return Income or principal derived from contributions by corporations shall be distributed by the trustees for use solely within the United States or its possessions. Irs form 1040x amended tax return No part of the net earnings of this trust shall inure or be payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of this trust shall be the carrying on of propaganda, or otherwise attempting to influence legislation. Irs form 1040x amended tax return No part of the activities of this trust shall be the participation in, or intervention in (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. Irs form 1040x amended tax return b) The trust shall continue forever unless the trustees terminate it and distribute all of the principal and income, which action may be taken by the trustees in their discretion at any time. Irs form 1040x amended tax return On such termination, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Irs form 1040x amended tax return The donor authorizes and empowers the trustees to form and organize a nonprofit corporation limited to the uses and purposes provided for in this Declaration of Trust, such corporation to be organized under the laws of any state or under the laws of the United States as may be determined by the trustees; such corporation when organized to have power to administer and control the affairs and property and to carry out the uses, objects, and purposes of this trust. Irs form 1040x amended tax return Upon the creation and organization of such corporation, the trustees are authorized and empowered to convey, transfer, and deliver to such corporation all the property and assets to which this trust may be or become entitled. Irs form 1040x amended tax return The charter, bylaws, and other provisions for the organization and management of such corporation and its affairs and property shall be such as the trustees shall determine, consistent with the provisions of this paragraph. Irs form 1040x amended tax return c) In this Declaration of Trust and in any amendments to it, references to “charitable organizations” or “charitable organization” mean corporations, trusts, funds, foundations, or community chests created or organized in the United States or in any of its possessions, whether under the laws of the United States, any state or territory, the District of Columbia, or any possession of the United States, organized and operated exclusively for charitable purposes, no part of the net earnings of which inures or is payable to or for the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting to influence legislation, and which do not participate in or intervene in (including the publishing or distributing of statements) any political campaign on behalf of or in opposition to any candidate for public office. Irs form 1040x amended tax return It is intended that the organization described in this paragraph C shall be entitled to exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs form 1040x amended tax return d) In this Declaration of Trust and in any amendments to it, the term “charitable purposes” shall be limited to and shall include only religious, charitable, scientific, literary, or educational purposes within the meaning of those terms as used in section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, but only such purposes as also constitute public charitable purposes under the law of trusts of the State of. Irs form 1040x amended tax return Fourth: This Declaration of Trust may be amended at any time or times by written instrument or instruments signed and sealed by the trustees, and acknowledged by any of the trustees, provided that no amendment shall authorize the trustees to conduct the affairs of this trust in any manner or for any purpose contrary to the provisions of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Irs form 1040x amended tax return An amendment of the provisions of this Article Fourth (or any amendment to it) shall be valid only if and to the extent that such amendment further restricts the trustees' amending power. Irs form 1040x amended tax return All instruments amending this Declaration of Trust shall be noted upon or kept attached to the executed original of this Declaration of Trust held by the trustees. Irs form 1040x amended tax return Fifth: Any trustee under this Declaration of Trust may, by written instrument, signed and acknowledged, resign his office. Irs form 1040x amended tax return The number of trustees shall be at all times not less than two, and whenever for any reason the number is reduced to one, there shall be, and at any other time there may be, appointed one or more additional trustees. Irs form 1040x amended tax return Appointments shall be made by the trustee or trustees for the time in office by written instruments signed and acknowledged. Irs form 1040x amended tax return Any succeeding or additional trustee shall, upon his or her acceptance of the office by written instrument signed and acknowledged, have the same powers, rights, and duties, and the same title to the trust estate jointly with the surviving or remaining trustee or trustees as if originally appointed. Irs form 1040x amended tax return  None of the trustees shall be required to furnish any bond or surety. Irs form 1040x amended tax return None of them shall be responsible or liable for the acts or omissions of any other of the trustees or of any predecessor or of a custodian, agent, depositary, or counsel selected with reasonable care. Irs form 1040x amended tax return  The one or more trustees, whether original or successor, for the time being in office, shall have full authority to act even though one or more vacancies may exist. Irs form 1040x amended tax return A trustee may, by appropriate written instrument, delegate all or any part of his or her powers to another or others of the trustees for such periods and subject to such conditions as such delegating trustee may determine. Irs form 1040x amended tax return  The trustees serving under this Declaration of Trust are authorized to pay to themselves amounts for reasonable expenses incurred and reasonable compensation for services rendered in the administration of this trust, but in no event shall any trustee who has made a contribution to this trust ever receive any compensation thereafter. Irs form 1040x amended tax return Sixth: In extension and not in limitation of the common law and statutory powers of trustees and other powers granted in this Declaration of Trust, the trustees shall have the following discretionary powers. Irs form 1040x amended tax return a) To invest and reinvest the principal and income of the trust in such property, real, personal, or mixed, and in such manner as they shall deem proper, and from time to time to change investments as they shall deem advisable; to invest in or retain any stocks, shares, bonds, notes, obligations, or personal or real property (including without limitation any interests in or obligations of any corporation, association, business trust, investment trust, common trust fund, or investment company) although some or all of the property so acquired or retained is of a kind or size which but for this express authority would not be considered proper and although all of the trust funds are invested in the securities of one company. Irs form 1040x amended tax return No principal or income, however, shall be loaned, directly or indirectly, to any trustee or to anyone else, corporate or otherwise, who has at any time made a contribution to this trust, nor to anyone except on the basis of an adequate interest charge and with adequate security. Irs form 1040x amended tax return b) To sell, lease, or exchange any personal, mixed, or real property, at public auction or by private contract, for such consideration and on such terms as to credit or otherwise, and to make such contracts and enter into such undertakings relating to the trust property, as they consider advisable, whether or not such leases or contracts may extend beyond the duration of the trust. Irs form 1040x amended tax return c) To borrow money for such periods, at such rates of interest, and upon such terms as the trustees consider advisable, and as security for such loans to mortgage or pledge any real or personal property with or without power of sale; to acquire or hold any real or personal property, subject to any mortgage or pledge on or of property acquired or held by this trust. Irs form 1040x amended tax return d) To execute and deliver deeds, assignments, transfers, mortgages, pledges, leases, covenants, contracts, promissory notes, releases, and other instruments, sealed or unsealed, incident to any transaction in which they engage. Irs form 1040x amended tax return e) To vote, to give proxies, to participate in the reorganization, merger, or consolidation of any concern, or in the sale, lease, disposition, or distribution of its assets; to join with other security holders in acting through a committee, depositary, voting trustees, or otherwise, and in this connection to delegate authority to such committee, depositary, or trustees and to deposit securities with them or transfer securities to them; to pay assessments levied on securities or to exercise subscription rights in respect of securities. Irs form 1040x amended tax return f) To employ a bank or trust company as custodian of any funds or securities and to delegate to it such powers as they deem appropriate; to hold trust property without indication of fiduciary capacity but only in the name of a registered nominee, provided the trust property is at all times identified as such on the books of the trust; to keep any or all of the trust property or funds in any place or places in the United States of America; to employ clerks, accountants, investment counsel, investment agents, and any special services, and to pay the reasonable compensation and expenses of all such services in addition to the compensation of the trustees. Irs form 1040x amended tax return Seventh: The trustees' powers are exercisable solely in the fiduciary capacity consistent with and in furtherance of the charitable purposes of this trust as specified in Article Third and not otherwise. Irs form 1040x amended tax return Eighth: In this Declaration of Trust and in any amendment to it, references to “trustees” mean the one or more trustees, whether original or successor, for the time being in office. Irs form 1040x amended tax return Ninth: Any person may rely on a copy, certified by a notary public, of the executed original of this Declaration of Trust held by the trustees, and of any of the notations on it and writings attached to it, as fully as he might rely on the original documents themselves. Irs form 1040x amended tax return Any such person may rely fully on any statements of fact certified by anyone who appears from such original documents or from such certified copy to be a trustee under this Declaration of Trust. Irs form 1040x amended tax return No one dealing with the trustees need inquire concerning the validity of anything the trustees purport to do. Irs form 1040x amended tax return No one dealing with the trustees need see to the application of anything paid or transferred to or upon the order of the trustees of the trust. Irs form 1040x amended tax return Tenth: This Declaration of Trust is to be governed in all respects by the laws of the State of . Irs form 1040x amended tax return Trustee Trustee Prev  Up  Next   Home   More Online Publications