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H And R Block 1040x

Tax For Military Active DutyIrs 1040x FormTurbo Tax For 2011 Tax YearFill Out 1040ez OnlineWhen Last Day File Taxes 2012Can You Do State Taxes For FreeNeed To File State Taxes OnlyFile Form 1040xHow To Fill Out 1040x ExampleTurbotax Deluxe Federal E File State 2010 Old Version2013 Federal 1040ez FormFile My 2009 Taxes Online FreeAmmend1040 Tax FormsFile Past Years Tax Return1040ez Calculator2011 Tax FormsIrs Form 1040 EzIrs Amended Tax FormsDoes H&r Block Do Taxes For FreeFile Tax Return For 20121040x 2012 Tax FormHow To File Taxes If Self EmployedForm 1040ez 2013Free 2005 Tax FilingWhere Can I File State And Federal Taxes For FreeFile 2011 Federal Tax Return2012 Form 1040aH&r Block Online FilingWhere To Find State Tax FormsAarp Free Tax Preparation1040nr InstructionsIrs.gov Form 1040x1040x Amendment Form2040 Ez FormTaxact 2010 FreeFederal Tax Forms 1040 EzFederal Income Tax Forms 1040ezHow To Amend Your Taxes2012 State Tax Forms

H And R Block 1040x

H and r block 1040x Publication 502 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. H and r block 1040x Tax questions. H and r block 1040x Useful Items - You may want to see: What's New Medical and dental expenses. H and r block 1040x  Beginning January 1, 2013, you can deduct only the part of your medical and dental expenses that exceed 10% of your adjusted gross income (AGI) (7. H and r block 1040x 5% if either you or your spouse was born before January 2, 1949). H and r block 1040x Standard mileage rate. H and r block 1040x  The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 24 cents per mile. H and r block 1040x See Transportation under What Medical Expenses Are Includible. H and r block 1040x Federal tax benefits for same-sex married couples. H and r block 1040x  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. H and r block 1040x For more information, see Publication 501, Exemptions, Standard Deduction, and Filing Information. H and r block 1040x Reminders Future developments. H and r block 1040x   For the latest information about developments related to Publication 502, such as legislation enacted after it was published, go to www. H and r block 1040x irs. H and r block 1040x gov/pub502. H and r block 1040x Photographs of missing children. H and r block 1040x  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. H and r block 1040x Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. H and r block 1040x You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. H and r block 1040x Introduction This publication explains the itemized deduction for medical and dental expenses that you claim on Schedule A (Form 1040). H and r block 1040x It discusses what expenses, and whose expenses, you can and cannot include in figuring the deduction. H and r block 1040x It explains how to treat reimbursements and how to figure the deduction. H and r block 1040x It also tells you how to report the deduction on your tax return and what to do if you sell medical property or receive damages for a personal injury. H and r block 1040x Medical expenses include dental expenses, and in this publication the term “medical expenses” is often used to refer to medical and dental expenses. H and r block 1040x You can deduct on Schedule A (Form 1040) only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (AGI). H and r block 1040x But if either you or your spouse was born before January 2, 1949, you can deduct the amount of your medical and dental expenses that is more than 7. H and r block 1040x 5% of your AGI. H and r block 1040x If your medical and dental expenses are not more than 10% of your AGI (7. H and r block 1040x 5% if either you or your spouse was born before January 2, 1949), you cannot claim a deduction. H and r block 1040x This publication also explains how to treat impairment-related work expenses, health insurance premiums if you are self-employed, and the health coverage tax credit that is available to certain individuals. H and r block 1040x Pub. H and r block 1040x 502 covers many common medical expenses but not every possible medical expense. H and r block 1040x If you cannot find the expense you are looking for, refer to the definition of medical expenses under What Are Medical Expenses . H and r block 1040x See How To Get Tax Help near the end of this publication for information about getting publications and forms. H and r block 1040x Comments and suggestions. H and r block 1040x   We welcome your comments about this publication and your suggestions for future editions. H and r block 1040x   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. H and r block 1040x NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. H and r block 1040x Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H and r block 1040x   You can send your comments from www. H and r block 1040x irs. H and r block 1040x gov/formspubs. H and r block 1040x Click on “More Information” and then on “Comment on Tax Forms and Publications. H and r block 1040x ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. H and r block 1040x Ordering forms and publications. H and r block 1040x   Visit www. H and r block 1040x irs. H and r block 1040x gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. H and r block 1040x Internal Revenue Service 1201 N. H and r block 1040x Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. H and r block 1040x   If you have a tax question, check the information available on IRS. H and r block 1040x gov or call 1-800-829-1040. H and r block 1040x We cannot answer tax questions sent to either of the above addresses. H and r block 1040x Useful Items - You may want to see: Publication 969 Health Savings Accounts and Other Tax-Favored Health Plans Forms (and Instructions) 1040 U. H and r block 1040x S. H and r block 1040x Individual Income Tax Return Schedule A (Form 1040) Itemized Deductions 8885 Health Coverage Tax Credit Prev  Up  Next   Home   More Online Publications
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The H And R Block 1040x

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