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1040 Irs

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1040 Irs

1040 irs Index A Acontecimientos futuros, Acontecimientos futuros Administración del Seguro Social (SSA) Ayuda para radicar documentos ante la SSA , Ayuda para radicar documentos ante la SSA. 1040 irs Ajustes a los Formularios 941-PR, 944(SP) o 943-PR Ajustes del período en curso, Ajustes del período en curso. 1040 irs Ajustes de períodos anteriores a los Formularios 941-PR, 944(SP) o 943-PR, Ajustes de períodos anteriores Cambio en el proceso para hacer ajustes libres de intereses, Antecedentes. 1040 irs Excepciones a las correcciones de las contribuciones sobre la nómina libres de intereses , Excepciones a las correcciones de las contribuciones sobre la nómina libres de intereses. 1040 irs Planillas para ajustes en períodos anteriores, Planillas para ajustes en períodos anteriores. 1040 irs Proceso para hacer ajustes a las contribuciones sobre la nómina, Proceso para hacer ajustes a las contribuciones sobre la nómina. 1040 irs Recaudando las contribuciones retenidas de menos de los empleados, Recaudando las contribuciones retenidas de menos de los empleados. 1040 irs Reintegro de cantidades incorrectamente retenidas de los empleados, Reintegro de cantidades incorrectamente retenidas de los empleados. 1040 irs Ayuda contributiva, Cómo obtener ayuda relacionada con las contribuciones Ayuda provista por el IRS , Ayuda provista por el IRS. 1040 irs Ayuda relacionada con las contribuciones, Ayuda relacionada con las contribuciones. 1040 irs B Beneficios marginales, Retención y declaración de la contribución sobre beneficios marginales proporcionados a los empleados Cuándo se tratan los beneficios marginales como pagados al empleado, Cuándo se tratan los beneficios marginales como pagados al empleado. 1040 irs Depósito de la contribución sobre los beneficios marginales, Depósito de la contribución sobre los beneficios marginales. 1040 irs Regla especial en el caso de beneficios marginales proporcionados en noviembre y diciembre, Regla especial en el caso de beneficios marginales proporcionados en noviembre y diciembre. 1040 irs Retención de las contribuciones al Seguro Social y al seguro Medicare sobre los beneficios marginales, Retención de las contribuciones al Seguro Social y al seguro Medicare sobre los beneficios marginales. 1040 irs Valorización de vehículos proporcionados a los empleados, Valorización de vehículos proporcionados a los empleados. 1040 irs C Cálculo de las contribuciones al Seguro Social, al seguro Medicare y al FUTA , 9. 1040 irs Cálculo de las contribuciones al Seguro Social, al seguro Medicare y al FUTA Compensación por enfermedad, Pagos de compensación por enfermedad. 1040 irs Contribución Adicional al Medicare , Retención de la Contribución Adicional al Medicare. 1040 irs Contribuciones al Seguro Social y al Medicare , Contribuciones al Seguro Social y al Medicare. 1040 irs Contribuciones pagadas por el patrono, Contribución pagada por el patrono correspondiente al empleado. 1040 irs Deducción de la contribución, Deducción de la contribución. 1040 irs Patronos domésticos y agrícolas, Patronos domésticos y agrícolas. 1040 irs Calendario, Calendario Formulario 499R-2/W-2PR, Calendario Formulario 940-PR, Calendario Formulario 943-PR, Calendario Formulario 944(SP), Calendario Formulario 944-PR, Calendario Para el 28 de febrero, Calendario Para el 30 de abril, Calendario Para el 31 de enero, Calendario Para el 31 de julio, Calendario Para el 31 de marzo, Calendario Para el 31 de octubre, Calendario Clasificación errónea de empleados, Clasificación errónea de empleados. 1040 irs COBRA Crédito de asistencia para las primas COBRA , Recordatorios, Crédito de asistencia para las primas de COBRA. 1040 irs Comentarios y sugerencias, Recordatorios Compañías subsidarias calificadas conforme al subcapítulo S QSubs, Entidades no consideradas como separadas de sus dueños y compañías subsidarias calificadas conforme al subcapítulo S (QSubs). 1040 irs Compensación por enfermedad, Compensación por enfermedad Patronos Compensación por enfermedad procedentes de una compañía de seguros o de algún otro tercero pagador, Patronos. 1040 irs Terceros pagadores, Terceros pagadores. 1040 irs Contratación de nuevos empleados, Recordatorios Contratistas independientes, Contratistas independientes. 1040 irs Contribución Adicional al Medicare Retención de la Contribución Adicional al Medicare , Recordatorios Contribución Adicional al Medicare, ajustes a la retención, Ajustes a la retención de la Contribución Adicional al Medicare. 1040 irs Contribución al Seguro Social y al seguro Medicare por trabajo agrícola, 7. 1040 irs Contribución al Seguro Social y al seguro Medicare por trabajo agrícola El requisito de los $150 o $2,500, El requisito de los $150 o $2,500. 1040 irs Excepciones al requisito de los $150 o $2,500, Excepciones. 1040 irs Contribución al Seguro Social y al seguro Medicare por trabajo doméstico, 8. 1040 irs Contribución al Seguro Social y al seguro Medicare por trabajo doméstico Contribución FUTA , Contribución federal para el desempleo (contribución FUTA). 1040 irs Contribución sobre los ingresos de Puerto Rico, Contribuciones sobre los ingresos de Puerto Rico. 1040 irs Contribuciones al Seguro Social y al Medicare para 2014, Contribuciones al Seguro Social y al Medicare para 2014. 1040 irs Crédito contributivo por oportunidad de trabajo, Recordatorios D Defensor del Contribuyente, Servicio del Defensor del Contribuyente. 1040 irs Depósito de las contribuciones al Seguro Social y al seguro  Medicare, requisitos de Ajustes a las contribuciones del período retroactivo , Ajustes a las contribuciones del período retroactivo. 1040 irs Aplicación de los itinerarios mensuales y bisemanales, Aplicación de los itinerarios mensuales y bisemanales. 1040 irs Cuándo se tienen que hacer los depósitos, Cuándo se tienen que hacer los depósitos. 1040 irs Depósitos en días laborables solamente, Depósitos en días laborables solamente. 1040 irs Depósitos, cuándo se hacen, 11. 1040 irs Depósito de las contribuciones al Seguro Social y al seguro  Medicare Días feriados oficiales, Días feriados oficiales. 1040 irs Ejemplo de itinerario bisemanal, Ejemplo de itinerario bisemanal. 1040 irs Ejemplo de itinerario mensual, Ejemplo de itinerario mensual. 1040 irs Ejemplo de las reglas de depósito de itinerario mensual y bisemanal para patronos de empleados agrícolas, Ejemplo de las reglas de depósito de itinerario mensual y bisemanal para patronos de empleados agrícolas. 1040 irs Ejemplo de las reglas de depósito de itinerario mensual y bisemanal para patronos de empleados no agrícolas, Ejemplo de las reglas de depósito de itinerario mensual y bisemanal para patronos de empleados no agrícolas. 1040 irs Fecha compensatoria para una cantidad depositada de menos, Fecha compensatoria para una cantidad depositada de menos: Formularios 941-X (PR), 944-X (PR), 944-X (SP), 943-X (PR), Ajustes a las contribuciones del período retroactivo. 1040 irs Patronos de empleados agrícolas nuevos, Patronos de empleados agrícolas nuevos. 1040 irs Patronos nuevos, Patronos nuevos. 1040 irs Patronos que tienen empleados tanto agrícolas como no agrícolas, Patronos que tienen empleados tanto agrícolas como no agrícolas. 1040 irs Período de depósito, Período de depósito. 1040 irs Período de depósito de itinerario bisemanal que abarca 2 trimestres, Período de depósito de itinerario bisemanal que abarca 2 trimestres. 1040 irs Período retroactivo para patronos de empleados agrícolas, Período retroactivo para patronos de empleados agrícolas. 1040 irs Período retroactivo para patronos de empleados no agrícolas, Período retroactivo para patronos de empleados no agrícolas. 1040 irs Regla de depositar $100,000 el próximo día, Regla de depositar $100,000 el próximo día. 1040 irs Regla de depósito de itinerario mensual, Regla de depósito de itinerario mensual. 1040 irs Regla de la exactitud de los depósitos, Regla de la exactitud de los depósitos. 1040 irs Reglas para los depositantes de itinerario bisemanal, Reglas para los depositantes de itinerario bisemanal. 1040 irs Requisito de los $2,500, Requisito de los $2,500. 1040 irs Depósito electrónico Contribución federal, Recordatorios Depósitos de la contribución al Seguro Social y al seguro  Medicare, cómo se hacen, Cómo hacer los depósitos Cuando usted recibe su EIN , Cuando usted recibe su EIN. 1040 irs Depósitos hechos a tiempo, Depósitos hechos a tiempo. 1040 irs Opción de pago el mismo día, Opción de pago el mismo día. 1040 irs Reclamación de créditos por pagos en exceso, Reclamación de créditos por pagos en exceso. 1040 irs Registro de depósitos, Registro de depósitos. 1040 irs Requisito de depósito electrónico, Requisito de depósito electrónico. 1040 irs Dirección Cambio de dirección, Recordatorios Discrepancias entre los Formularios 941-PR or 944-PR y los Formularios 499R-2/W-2PR, Recordatorios E Elegibilidad para empleo, Elegibilidad para empleo. 1040 irs Empleado Definición, 2. 1040 irs ¿Quiénes son empleados? Estatutarios, Empleados estatutarios. 1040 irs Según el derecho común, Definición de empleado según el derecho común. 1040 irs Empleado doméstico Requisito de $1,900, Requisito de $1,900. 1040 irs Empleados Clasificación errónea de empleados, Clasificación errónea de empleados. 1040 irs Empleados arrendados, Empleados arrendados. 1040 irs Entidades no consideradas como separadas de sus dueños, Entidades no consideradas como separadas de sus dueños y compañías subsidarias calificadas conforme al subcapítulo S (QSubs). 1040 irs Exención, disposiciones de, Disposiciones de exención. 1040 irs Especialista en servicios técnicos, Especialista en servicios técnicos. 1040 irs F Formulario 499R-2/W-2PR, 13. 1040 irs Los Formularios 499R-2/W-2PR y W-3PR SS-5-SP, Recordatorios, Tarjeta de Seguro Social del empleado. 1040 irs SS-8PR, Ayuda provista por el IRS. 1040 irs W-3PR, 13. 1040 irs Los Formularios 499R-2/W-2PR y W-3PR Formulario 944-PR descontinuado, Recordatorios Fotografías de niños desaparecidos, Recordatorios FUTA Ley Federal de Contribución para el Desempleo (FUTA). 1040 irs , Ley Federal de Contribución para el Desempleo (FUTA). 1040 irs Reducción en el crédito contra la contribución FUTA , Estados o territorios con reducción en el crédito. 1040 irs G Gastos de viaje y de representación, Gastos de viaje y de representación. 1040 irs I Individuos que no son empleados estatutarios, Individuos que no son empleados estatutarios. 1040 irs Agentes de bienes inmuebles autorizados, Agentes de bienes inmuebles autorizados. 1040 irs Personas a quienes se les paga por acompañar y posiblemente cuidar a otras, Personas a quienes se les paga por acompañar y posiblemente cuidar a otras. 1040 irs Vendedores directos, Vendedores directos. 1040 irs Introducción, Introduction L Líder de cuadrilla agrícola, Líder de cuadrilla agrícola. 1040 irs Los Formularios 499R-2/W-2PR y W-3PR, 13. 1040 irs Los Formularios 499R-2/W-2PR y W-3PR Problemas con la radicación electrónica, Problemas con la radicación electrónica. 1040 irs Radicación de Formularios 499R-2/W-2PR ante el Departamento de Hacienda, Radicación de Formularios 499R-2/W-2PR ante el Departamento de Hacienda. 1040 irs Solicitud de exención de radicación de declaraciones informativas por medios electrónicos, Solicitud de exención de radicación de declaraciones informativas por medios electrónicos. 1040 irs M Mantenimiento de récords, Recordatorios Matrimonio Matrimonio entre personas del mismo sexo. 1040 irs , Qué hay de nuevo Medicare Retención de la Contribución Adicional al Medicare , Retención de la Contribución Adicional al Medicare. 1040 irs Medios electrónicos, pago y radicación por, Recordatorios Multas relacionadas con los depósitos de la contribución al Seguro Social y al seguro  Medicare , Multas relacionadas con los depósitos. 1040 irs Agentes de reportación, Agentes de reportación. 1040 irs Multa por recuperación del fondo fiduciario, Multa por recuperación del fondo fiduciario. 1040 irs Multa promediada por no depositar, Multa promediada por no depositar. 1040 irs Orden en que se aplican los depósitos, Orden en que se aplican los depósitos. 1040 irs Regla especial para los que radicaron el Formulario 944(SP) anteriormente, Regla especial para los que radicaron el Formulario 944(SP) anteriormente. 1040 irs N Negocio perteneciente y administrado por cónyuges, Negocio que pertenece y es administrado por los cónyuges Excepción: Negocio en participación calificado, Excepción: Negocio en participación calificado. 1040 irs Nómina Externalización de las obligaciones de la nómina, Recordatorios Outsourcing payroll duties , Recordatorios Número de identificación de contribuyente individual (ITIN), Número de identificación personal del contribuyente (ITIN) del IRS para extranjeros. 1040 irs Número de identificación patronal (EIN), 3. 1040 irs Número de identificación patronal (EIN) Número de identificación patronal en linea (EIN), solicitud de un, Recordatorios Número de Seguro Social Dónde se obtienen los formularios , Dónde se obtienen los formularios para solicitar un Número de Seguro Social. 1040 irs Número de Seguro Social (SSN) , 4. 1040 irs Número de Seguro Social (SSN), Tarjeta de Seguro Social del empleado. 1040 irs Escriba correctamente el nombre y número de Seguro Social del empleado, Escriba correctamente el nombre y número de Seguro Social del empleado. 1040 irs Tarjeta de Seguro Social del empleado, Tarjeta de Seguro Social del empleado. 1040 irs Verificación de los números de Seguro Social, Verificación de los números de Seguro Social. 1040 irs P Pago por medios electrónicos, Recordatorios Pagos con tarjeta de crédito o débito, Recordatorios Pagos que no se consideran salarios Empleado doméstico, Pagos que no se consideran salarios. 1040 irs Transportación (beneficios de transporte), Transportación (beneficios de transporte). 1040 irs Pagos rechazados, Recordatorios Pagos y depósitos de la contribución FUTA , 10. 1040 irs Pagos y depósitos de la contribución federal para el desempleo (la contribución FUTA) Depósitos, Depósitos. 1040 irs Empleados domésticos, Empleados domésticos. 1040 irs Formulario 940-PR, Formulario 940-PR. 1040 irs Tasa de la contribución, Tasa de la contribución FUTA. 1040 irs Trabajadores agrícolas, Trabajadores agrícolas. 1040 irs Parte responsable Cambio de parte responsable, Qué hay de nuevo Patrono, definición, 1. 1040 irs ¿Quién es patrono? Planillas para patronos Formulario 944(SP), Formulario 944(SP). 1040 irs Multas por no radicar y por no pagar, Multas o penalidades. 1040 irs Patrono sucesor, Patrono sucesor. 1040 irs Patrono sucesor, crédito especial, Crédito especial para un patrono sucesor. 1040 irs Patronos de empleados domésticos que declaran las contribuciones al Seguro Social y al Medicare , Patronos de empleados domésticos que declaran las contribuciones al Seguro Social y al Medicare. 1040 irs Patronos de trabajadores agrícolas, Patronos de trabajadores agrícolas. 1040 irs Patronos que no son patronos agrícolas, Patronos que no son patronos agrícolas. 1040 irs Planilla anual y pago de la contribución federal para el desempleo (contribución  FUTA), Planilla anual y pago de la contribución federal para el desempleo (contribución FUTA). 1040 irs Programa de acuerdo voluntario para la clasificación de trabajadores (VCSP), Programa para el acuerdo de clasificación voluntaria de trabajadores (VCSP, por sus siglas en inglés). 1040 irs Propinas, 6. 1040 irs Propinas Formulario 4070-PR, 6. 1040 irs Propinas Formulario 4070A-PR, 6. 1040 irs Propinas Informe de propinas, Informe de propinas. 1040 irs Recaudación de las contribuciones sobre las propinas, Recaudación de las contribuciones sobre las propinas. 1040 irs Regla de disposición, Regla de disposición. 1040 irs Q Qué hay de nuevo Contribuciones al Medicare para 2014, Qué hay de nuevo Contribuciones al Seguro Social para 2014, Qué hay de nuevo R Radicación por medios electrónicos, Recordatorios Radicar el Formulario 944(SP) en vez del Formulario 941-PR, Recordatorios Recordatorios, Recordatorios Récords, Recordatorios Reglas especiales para varias clases de servicios y de pagos, 15. 1040 irs Reglas especiales para varias clases de servicios y de pagos Retención de la contribución federal sobre ingresos, 14. 1040 irs Retención de la contribución federal sobre ingresos S Salarios sujetos a la contribución Compensaciones sujetos a la contribución, 5. 1040 irs Salarios y otra compensación Servicio del Defensor del Contribuyente, Servicio del Defensor del Contribuyente. 1040 irs Servicios de entrega privados, Recordatorios T Tarjetas de crédito o débito, pagos con, Recordatorios TAS , Servicio del Defensor del Contribuyente. 1040 irs Trabajo doméstico, Trabajo doméstico. 1040 irs V Veteranos calificados, contratación, Recordatorios Visa H-2A, Trabajadores agrícolas. 1040 irs Remuneración pagada a trabajadores agrícolas con visa H-2A, Recordatorios Prev  Up     Home   More Online Publications
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The 1040 Irs

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