If you paid someone to care for a qualifying individual so you (and your spouse if you are married) could work or look for work, you may be able to claim the credit for child and dependent care expenses. If you are married,
both you and your spouse must have earned income, unless one spouse was either
a full-time student or was physically or mentally incapable of self-care.
The expenses you paid must have been for the care of one or more of the following
qualifying individuals:
- Your dependent who was under age 13 when care was provided and for whom
you can claim an exemption. (For an exception to the exemption rule, refer
to Child of Divorced or Separated Parents in Publication 503 (PDF).)
- Your spouse who is mentally or physically not able to care for himself
or herself; or
- Your dependent who was physically or mentally not able to care for himself
or herself, and for whom you can claim an exemption (or could claim an exemption
except the person had $2,900 or more of gross income).
In addition to the conditions just described, to take the credit, you must
meet all the following conditions:
- The qualifying person must have lived with you in a home kept up by you
(and your spouse, if you are married).
- You must provide the taxpayer identification number (usually the social
security number) of the qualifying person.
- Your filing status must be a status other than married filing separate.
(You must file a joint return if you are married.)
- The payments for care cannot be paid to someone you can claim as your
dependent, or to your child who is under age 19 even if he or she is not your
dependent.
- You must report the name, address, and taxpayer identification number,
(either the social security number, or the employer identification number)
of the care provider on your return, unless the care provider is tax exempt.
You can use Form W-10 (PDF), Dependent Care
Provider's Identification and Certification, to request this information
from the care provider.
If you qualify for the credit, complete Schedule 2 of Form 1040A (PDF), or Form 2441 (PDF) with Form 1040 (PDF). If you received dependent care benefits
from your employer (this amount should be shown in Box 10 of your 2001 Form W-2 (PDF)), you must complete Part III of Schedule
2 (Form 1040A) or Form 2441. You cannot use Form 1040EZ
if you claim the child and dependent care credit.
The credit is a percentage, based on your adjusted gross income, of the
amount of work-related child and dependent care expenses you paid to
a care provider. You may use up to $2,400 of the expenses paid in a year for
one qualifying individual, or $4,800 for two or more qualifying individuals.
These dollar limits must be reduced by the amount of any dependent care benefits
provided by your employer that you exclude from your income. Refer to Publication
503, Child and Dependent Care Expenses, for additional information.
If you pay someone to look after your dependent or spouse in your home,
you may be a household employer. If you are, you may have to withhold and
pay social security and Medicare tax and pay federal unemployment tax. For
information on this subject, refer to Publication 926 (PDF), Household Employer's
Tax Guide, or select Tax Topic 756 and Tax Topic 760.
For information on the Child Tax Credit, refer to Publication 17 (PDF), Your
Federal Income Tax.
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