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

In 1961, the federal government and the governments of Delaware, New Jersey, Pennsylvania, and New York, entered into an agreement that created the Delaware River Basin Commission. The Commission has the independent legal authority to oversee and manage the Delaware River Basin.

Contact the Agency or Department

Website: Delaware River Basin Commission

Contact In-Person: Directions

Address: 25 State Police Dr
P.O. Box 7360

West Trenton, NJ 08628-0360

Phone Number: (609) 883-9500

The Myfreetaxes Com

Myfreetaxes com Part One -   The Income Tax Return The four chapters in this part provide basic information on the tax system. Myfreetaxes com They take you through the first steps of filling out a tax return—such as deciding what your filing status is, how many exemptions you can take, and what form to file. Myfreetaxes com They also discuss recordkeeping requirements, IRS e-file (electronic filing), certain penalties, and the two methods used to pay tax during the year: withholding and estimated tax. Myfreetaxes com Table of Contents 1. Myfreetaxes com   Filing InformationWhat's New Reminders Introduction Do I Have To File a Return?Individuals—In General Dependents Certain Children Under Age 19 or Full-Time Students Self-Employed Persons Aliens Who Should File Which Form Should I Use?Form 1040EZ Form 1040A Form 1040 Does My Return Have To Be on Paper?IRS e-file When Do I Have To File?Private delivery services. Myfreetaxes com Extensions of Time To File How Do I Prepare My Return?When Do I Report My Income and Expenses? Social Security Number (SSN) Presidential Election Campaign Fund Computations Attachments Third Party Designee Signatures Paid Preparer Refunds Amount You Owe Gift To Reduce Debt Held by the Public Name and Address Where Do I File? What Happens After I File?What Records Should I Keep? Why Keep Records? Kinds of Records to Keep Basic Records How Long to Keep Records Refund Information Interest on Refunds Change of Address What If I Made a Mistake?Amended Returns and Claims for Refund Penalties Identity Theft 2. Myfreetaxes com   Filing StatusWhat's New Introduction Useful Items - You may want to see: Marital StatusDivorced persons. Myfreetaxes com Divorce and remarriage. Myfreetaxes com Annulled marriages. Myfreetaxes com Head of household or qualifying widow(er) with dependent child. Myfreetaxes com Considered married. Myfreetaxes com Same-sex marriage. Myfreetaxes com Spouse died during the year. Myfreetaxes com Married persons living apart. Myfreetaxes com Single Married Filing JointlyFiling a Joint Return Married Filing SeparatelySpecial Rules Head of HouseholdConsidered Unmarried Keeping Up a Home Qualifying Person Qualifying Widow(er) With Dependent Child 3. Myfreetaxes com   Personal Exemptions and DependentsWhat's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Myfreetaxes com Taxpayer identification numbers for aliens. Myfreetaxes com Taxpayer identification numbers for adoptees. Myfreetaxes com 4. Myfreetaxes com   Tax Withholding and Estimated TaxWhat's New for 2014 Reminders Introduction Useful Items - You may want to see: Tax Withholding for 2014Salaries and Wages Tips Taxable Fringe Benefits Sick Pay Pensions and Annuities Gambling Winnings Unemployment Compensation Federal Payments Backup Withholding Estimated Tax for 2014Who Does Not Have To Pay Estimated Tax Who Must Pay Estimated Tax How To Figure Estimated Tax When To Pay Estimated Tax How To Figure Each Payment How To Pay Estimated Tax Credit for Withholding and Estimated Tax for 2013Withholding Estimated Tax Underpayment Penalty for 2013 Prev  Up  Next   Home   More Online Publications