| Pub. 503, Child and Dependent Care Expenses |
2004 Tax Year |
Main Contents
This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
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.
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The care must be for one or more qualifying persons who are identified on the form you use to claim the credit. (See Qualifying Person
Test.)
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You (and your spouse if you are married) must keep up a home that you live in with the qualifying person or persons. (See
Keeping Up a
Home Test, later.)
-
You (and your spouse if you are married) must have earned income during the year. (However, see Rule for student-spouse or spouse not
able to care for self under Earned Income Test, later.)
-
You must pay child and dependent care expenses so you (and your spouse if you are married) can work or look for work. (See
Work-Related
Expense Test, later.)
-
You must make payments for child and dependent care to someone you (or your spouse) cannot claim as a dependent. 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. (See Payments to Relatives under
Work-Related Expense Test, later.)
-
Your filing status must be single, head of household, qualifying widow(er) with dependent child, or married filing jointly.
You must file a
joint return if you are married, unless an exception applies to you. See Joint Return Test, later.
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You must identify the care provider on your tax return. (See Provider Identification Test, later.)
-
If you exclude or deduct dependent care benefits provided by a dependent care benefit plan, the total amount you exclude or
deduct must be
less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for, or $6,000 if
two or more qualifying
persons were cared for). (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. See Reduced Dollar Limit under How To Figure the
Credit, later.)
These tests are presented in Figure A and are also explained in detail in this publication.
Your child and dependent care expenses must be for the care of one or more qualifying persons.
A qualifying person is:
-
Your dependent who was under age 13 when the care was provided and for whom you can claim an exemption,
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Your spouse who was physically or mentally 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 $3,100 or more of gross income or filed a joint return).
If you are divorced or separated, see Child of Divorced or Separated Parents, later, to determine which parent may treat the child as a
qualifying person.
For information on claiming an exemption, see Publication 501.
Physically or mentally not able to care for oneself.
Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able
to care for themselves. Also,
persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care
for themselves.
Person qualifying for part of year.
You determine a person's qualifying status each day. 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. Also see Dollar Limit under How To Figure the Credit,
later.
Taxpayer identification number.
You must include on your return the name and taxpayer identification number (generally the social security number)
of the qualifying person(s). If
the correct information is not shown, the credit may be reduced or disallowed.
Individual taxpayer identification number (ITIN) for aliens.
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. The ITIN is entered wherever an SSN is requested on a tax return. If the alien does not have an ITIN, he or she must
apply for one on Form W-7,
Application for IRS Individual Taxpayer Identification Number.
An ITIN is for tax use only. It does not entitle the holder to social security benefits or change the holder's employment
or immigration status
under U.S. law.
Adoption taxpayer identification number (ATIN).
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. File Form W-7A, Application for Taxpayer
Identification Number for
Pending U.S. Adoptions.
Child of Divorced or Separated Parents
To be a qualifying person, your child usually must be your dependent for whom you can claim an exemption. But there is an
exception to this that
applies if all of the following are true.
-
You are divorced or separated under a decree of divorce or separate maintenance or a written separation agreement, or you
lived apart from
the other parent at all times during the last 6 months of the year.
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One or both parents had custody of the child for more than half of the year.
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One or both parents provided more than half of the child's support for the year.
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The child was under age 13 or was physically or mentally not able to care for himself or herself.
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Either:
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The custodial parent signed Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents, or a similar
statement,
agreeing not to claim the child's exemption for the year, or
-
The noncustodial parent provided at least $600 for the child's support and can claim the child's exemption under a pre-1985
decree or
separate maintenance or written agreement.
For purposes of 5(a), a similar statement includes a divorce decree or separation agreement that went into effect after 1984
that allows the
noncustodial parent to claim the child's exemption without any conditions, such as payment of support.
If the exception applies and you are the custodial parent, you can treat your child as a qualifying person even if you cannot
claim the child's
exemption. If you are the noncustodial parent, you cannot treat your child as a qualifying person even if you can claim the
child's exemption.
If the exception does not apply, use the rules described earlier to determine whether your child is a qualifying person.
You can use Figure B to see whether this exception applies to you.
Example.
You are divorced and have custody of your 8-year-old child. You sign Form 8332 to allow your ex-spouse to claim the exemption.
You pay childcare
expenses so you can work. Your child is a qualifying person and you, the custodial parent, can claim the credit for those
expenses, even though your
ex-spouse claims an exemption for the child.
Custodial parent.
You are the custodial parent if, during the year, you have custody of your child longer than your
child's other parent has custody.
To claim the credit, you must keep up a home. You and one or more qualifying persons must live in the home.
You are keeping up a home if you (and your spouse if you are married) pay more than half the cost of running it for the year.
If you live in your
home with a qualifying person for less than a full year, see Cost determined monthly, later.
Home.
The home you keep must be the main home for both you and the qualifying person. Your home can be the main home even
if the qualifying person does
not live there all year because of his or her:
-
Birth,
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Death, or
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Temporary absence due to:
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Sickness,
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School,
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Business,
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Vacation,
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Military service, or
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Custody agreement.
Costs of keeping up a home.
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.
Costs not included.
The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life
insurance, transportation, or
mortgage principal.
They also do not include the purchase, permanent improvement, or replacement of property. For example, you cannot
include the cost of replacing a
water heater. However, you can include the cost of repairing a water heater.
Public assistance benefits.
Payments you receive from a state that you use to keep up your home are funds provided by the state, not by you. You
must provide more than half
the cost of keeping up your home from your own funds to claim the credit for child and dependent care expenses.
Families living together.
If you and your family share living space with another family, your family and the other family are treated as separate
households. (This rule
applies only for purposes of the credit for child and dependent care expenses.) If you provide more than half the cost of
running your household, you
are keeping up a home.
Cost determined monthly.
If a qualified person lived with you for less than a full year, figure the cost of keeping up your home for that period.
To do this, divide your
cost for the year by 12 and multiply the result by the number of months the person lived with you. Count any partial month
as a full month.
Example.
Joe lives in his home all year, but his son, who is a qualifying person, lives in it only from
June 20 to December 31. The cost of keeping up his home for the full year is $6,600. To meet the keeping up a home test, Joe
must pay more than half
the cost of keeping up the home from June 1 to December 31. He figures half the cost as follows.
| |
Cost of Keeping Up Joe's Home That He Must Pay
|
|
|
|
|
1)
|
Cost of keeping up the home for the full year
|
$
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6,600
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2)
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Divided by the number of months in a year
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÷ 12
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|
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3)
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Monthly cost of keeping up the home
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$
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550
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|
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4)
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Multiplied by number of months the qualifying
person lived in the home
|
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× 7
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|
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5)
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Cost of keeping up the home while the
qualifying person lived there
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$
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3,850
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|
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6)
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Multiplied by one-half
|
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× .50
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|
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7)
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Half the cost of keeping up the home while the qualifying person lived there
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$
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1,925
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|
To meet the keeping up a home test, Joe must pay more than $1,925 to keep up his home from June 1 to December 31.
To claim the credit, you (and your spouse if you are married) must have earned income during the year.
Earned income.
Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment.
A net loss from
self-employment reduces earned income. Earned income also includes strike benefits and any disability pay you report as wages.
Earned income also includes nontaxable employee compensation such as parsonage allowances, meals and lodging furnished
for the convenience of the
employer, voluntary salary deferrals, military basic quarters and subsistence allowances and in-kind quarters and subsistence,
and military pay earned
in a combat zone.
Members of certain religious faiths opposed to social security.
This section is for persons who are members of certain religious faiths that are opposed to participation in Social
Security Act programs and have
an IRS-approved form that exempts certain income from social security and Medicare taxes. These forms are:
-
Form 4361, Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian
Science
Practitioners, and
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Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of
recognized
religious groups.
Each form is discussed in this section in terms of what is or is not earned income for purposes of the child and dependent
care credit. For
information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy
and Religious Workers.
Form 4361.
Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee
are earned income. This
includes wages, salaries, tips, and other employee compensation. Other employee compensation includes earned income that is
not taxable, such as a
housing allowance or the rental value of a parsonage that you receive as part of your pay for services as an employee.
However, amounts you received for ministerial duties, but not as an employee, are not net earnings from self-employment
for purposes of the child
and dependent care credit. Examples include fees for performing marriages and honoraria for delivering speeches. Any income
or loss from these
activities is not taken into account in figuring earned income.
Any amount you received for work that is not related to your ministerial duties is earned income.
Form 4029.
Whether or not you have an approved Form 4029, all wages, salaries, tips, and other employee compensation are earned
income.
However, amounts you received as a self-employed individual are not net earnings from self-employment for purposes
of the child and dependent care
credit, and are not taken into account in figuring earned income.
What is not earned income?
Earned income does not include pensions or annuities, social security payments, workers' compensation, interest, dividends,
or unemployment
compensation. It also does not include scholarship or fellowship grants, except amounts paid to you (and reported on Form
W-2) for teaching, research,
or other services.
Rule for student-spouse or spouse not able to care for self.
Your spouse is treated as having earned income for any month that he or she is:
-
A full-time student, or
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Physically or mentally not able to care for himself or herself.
Figure the earned income of the nonworking spouse, described under (1) or (2) above, as shown under Earned Income Limit under How
To Figure the Credit, later.
This rule applies to only one spouse for any one month. If, in the same month, both you and your spouse do not work
and are either full-time
students or physically or mentally not able to care for yourselves, only one of you can be treated as having earned income
in that month.
Full-time student.
You are a full-time student if you are enrolled at and attend a school for the number of hours or
classes that the school considers full time. You must have been a student for some part of each of 5 calendar months during
the year. (The months need
not be consecutive.) If you attend school only at night, you are not a full-time student. However, as part of your full-time
course of study, you may
attend some night classes.
School.
The term “ school” includes elementary schools, junior and senior high schools, colleges, universities, and technical, trade, and mechanical
schools. It does not include on-the-job training courses, correspondence schools, and night schools.
Work-Related Expense Test
Child and dependent care expenses must be work related to qualify for the credit. Expenses are considered work related only
if both of the
following are true.
Working or Looking for Work
To be work related, your expenses must allow you to work or look for work. If you are married,
generally both you and your spouse must work or look for work. Your spouse is treated as working during any month he or she
is a full-time student or
is physically or mentally not able to care for himself or herself.
Your work can be for others or in your own business or partnership. It can be either full time or part time.
Work also includes actively looking for work. However, if you do not find a job and have no earned income for the year, you
cannot take this
credit. See Earned Income Test, earlier.
Whether your expenses allow you to work or look for work depends on the facts. For example, the cost of a baby sitter while
you and your spouse go
out to eat is not normally a work-related expense.
An expense is not considered work related merely because you had it while you were working. The purpose of the expense must
be to enable you to
work.
Volunteer work.
For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal
salary.
Work for part of year.
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. 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.
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 (21/ months × $250).
Payments while you are out sick.
Do not count as work-related expenses amounts you pay for child and dependent care while you are off work because
of illness. These amounts are not
paid to allow you to work. This applies even if you get sick pay and are still considered an employee.
Care of a Qualifying Person
To be work related, your expenses must be to provide care for a qualifying person. You do not have to choose the least expensive
way of providing
the care.
Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection.
Expenses for household services qualify if part of the services is for the care of qualifying persons. See
Household Services, later.
Expenses not for care.
Expenses for care do not include amounts you pay for food, clothing, education, and entertainment. However, you can
include small amounts paid for
these items if they are incident to and cannot be separated from the cost of caring for the qualifying person. Otherwise,
see the discussion of
Expenses partly work related, later.
Education.
Expenses to attend first grade or a higher grade are not expenses for care. Do not use these expenses to figure your
credit.
Example 1.
You take your 3-year-old child to a nursery school that provides lunch and a few educational activities as part of its preschool
childcare service.
You can count the total cost when you figure the credit.
Example 2.
You place your 10-year-old child in a boarding school so you can work full time. Only the part of the boarding school expense
that is for the care
of your child is a work-related expense. You can count that part of the expense in figuring your credit if it can be separated
from the cost of
education. You cannot count any part of the amount you pay the school for your child's education.
Care outside your home.
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.
Dependent care center.
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.
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.
Camp.
The cost of sending your child to an overnight camp is not considered a work-related expense.
Transportation.
The cost of getting a qualifying person from your home to the care location and back, or from the care location to
school and back, is not
considered a work-related expense. This includes the costs of bus, subway, taxi, or private car. Also, if you pay the transportation
cost for the care
provider to come to your home, you cannot count this cost as a work-related expense.
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.
Definition.
Household services are ordinary and usual services done in and around your home that are necessary to run your home.
They include the services of a
housekeeper, maid, or cook. However, they do not include the services of a chauffeur, bartender, or gardener.
Housekeeper.
In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying
person.
Expenses partly work related.
If part of an expense is work related (for either household services or the care of a qualifying person) and part
is for other purposes, you have
to divide the expense. To figure your credit, count only the part that is work related. However, you do not have to divide
the expense if only a small
part is for other purposes.
Example.
You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. The housekeeper spends most of
the time doing normal
household work and spends 30 minutes a day driving you to and from work. You do not have to divide the expenses. You can treat
the entire expense of
the housekeeper as work related because the time spent driving is minimal. Nor do you have to divide the expenses between
the two children, even
though the expenses are partly for the 15-year-old child who is not a qualifying person, because the expense is also partly
for the care of your
9-year-old child, who is a qualifying person. However, the dollar limit (discussed later) is based on one qualifying person,
not two.
Meals and lodging provided for housekeeper.
If you have expenses for meals that your housekeeper eats in your home because of his or her employment, count these
as work-related expenses. If
you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also.
Example.
To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. You can
count the extra rent and utility expenses for the housekeeper's bedroom as work related. However, if your housekeeper moves
into an existing bedroom
in your home, you can count only the extra utility expenses as work related.
Taxes paid on wages.
The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. For more information
on a household
employer's tax responsibilities, see Employment Taxes for Household Employers, later.
You can count work-related payments you make to relatives who are not your dependents, even if they live in your home. However,
do not count any
amounts you pay to:
-
A dependent for whom you (or your spouse if you are married) can claim an exemption, or
-
Your child who is under age 19 at the end of the year, even if he or she is not your dependent.
Generally, married couples must file a joint return to take the credit. 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.
Legally separated.
You are not considered married if you are legally separated from your spouse under a decree of divorce or separate
maintenance. You are eligible to
take the credit on a separate return.
Married and living apart.
You are not considered married and are eligible to take the credit if all the following apply.
-
You file a separate return.
-
Your home is the home of a qualifying person for more than half the year.
-
You pay more than half the cost of keeping up your home for the year.
-
Your spouse does not live in your home for the last 6 months of the year.
Death of spouse.
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.
If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's separate return.
Provider Identification Test
You must identify all persons or organizations that provide care for your child or dependent. Use Part I of Form 2441 or Schedule
2 (Form 1040A) to
show the information.
Information needed.
To identify the care provider, you must give the provider's:
-
Name,
-
Address, and
-
Taxpayer identification number.
If the care provider is an individual, the taxpayer identification number is his or her social security
number or individual taxpayer identification number. If the care provider is an organization, then it is the employer identification
number (EIN).
You do not have to show the taxpayer identification number if the care provider is one of certain tax-exempt organizations
(such as a church or
school). In this case, write “ Tax-Exempt” in the space where the tax form calls for the number.
If you cannot provide all of the information or the information is incorrect, you must be able to show that you used
due diligence (discussed
later) in trying to furnish the necessary information.
Getting the information.
You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information
from the care provider. If you do not use Form W-10, you can get the information from:
-
A copy of the provider's social security card,
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A copy of the provider's driver's license (in a state where the license includes the social security number),
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A copy of the provider's completed Form W-4, Employee's Withholding Allowance Certificate, if he or she is your household
employee,
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A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or
-
A letter or invoice from the provider if it shows the necessary information.
You should keep this information with your tax records. Do not send Form W-10 (or other document containing this information)
to the Internal
Revenue Service.
Due diligence.
If the care provider information you give is incorrect or incomplete, your credit may not be allowed. However, if
you can show that you used due
diligence in trying to supply the information, you can still claim the credit.
You can show due diligence by getting and keeping the provider's completed Form W-10 or one of the other sources of
information listed earlier.
Care providers can be penalized if they do not provide this information to you or if they provide incorrect information.
Provider refusal.
If the provider refuses to give you the identifying information, you should report whatever
information you have (such as the name and address) on the form you use to claim the credit. Enter “ See Page 2” in the columns calling for the
information you do not have. On the bottom of page 2, explain that you requested the information from the care provider, but
the provider did not give
you the information. This statement will show that you used due diligence in trying to furnish the necessary information.
Your credit is a percentage of your work-related expenses. Your expenses are subject to the earned income limit and the dollar
limit. The
percentage is based on your adjusted gross income.
Figuring Total Work-Related Expenses
To figure the credit for 2004 work-related expenses, count only those you paid by December 31, 2004.
Expenses prepaid in an earlier year.
If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is
received. Claim the expenses for
the later year as if they were actually paid in that later year.
Expenses not paid until the following year.
Do not count 2003 expenses that you paid in 2004 as work-related expenses for 2004. You may be able to claim an additional
credit for them on your
2004 return, but you must figure it separately. See Payments for previous year's expenses under Amount of Credit, later.
If you had expenses in 2004 that you did not pay until 2005, you cannot count them when figuring your 2004 credit. You may
be able to claim a
credit for them on your 2005 return.
Expenses reimbursed.
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.
Example.
You paid work-related expenses of $3,000. You are reimbursed $2,000 by a state social services agency. You can use only $1,000
to figure your
credit.
Medical expenses.
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. You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction.
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. However, if you use your total expenses to figure your medical expense deduction, you cannot
use any part of them to
figure your credit. For information on medical expenses, see Publication 502, Medical and Dental Expenses.
Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense
deduction.
If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. See Reduced Dollar Limit, later.
But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits.
Dependent care benefits.
Dependent care benefits include:
-
Amounts paid directly to either you or your care provider for the care of your qualifying person while you work, and
-
The fair market value of care in a daycare facility provided or sponsored by your employer.
Your salary may have been reduced to pay for these benefits. If you received benefits, they should be shown on your Form W-2,
Wage and Tax
Statement. See Statement for employee, later.
Exclusion or deduction.
If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits
from your income. Your employer
can tell you whether your benefit plan qualifies.
If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both
employer and employee.
Therefore, you would not get an exclusion from wages but instead a deduction on Form 1040, Schedule C, line 14; Schedule E,
line 18; or Schedule F,
line 17. Partnerships would report a separately-stated deduction on Schedule K-1 (Form 1065), line 13, that you would enter
on Schedule E (Form 1040),
line 28.
If your plan qualifies, you must complete Part III of either Form 2441 or Schedule 2 (Form 1040A) to claim the exclusion.
You cannot use Form
1040EZ. You must use Form 2441 to claim the deduction.
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).
Figuring earned income.
When figuring your exclusion or deduction, the definition of earned income is not exactly the same as the definition
used when figuring the credit
for child and dependent care expenses.
Generally, only taxable compensation is included. However, you can elect to include nontaxable combat pay in
earned income. You should figure your exclusion or deduction both ways and make the election if it gives you a greater tax
benefit.
The election to include nontaxable combat pay in earned income cannot be made on the return of a taxpayer whose tax year ended
before October 4,
2004, due to his or her death.
Note. Earned income does not include any dependent care benefits you receive.
Statement for employee.
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. Your employer will also include any dependent care benefits over $5,000 in your wages shown
on your Form W-2 in box
1.
Forfeitures.
Forfeitures are amounts credited to your dependent care benefit account (flexible spending account) and included in
the amount shown on your Form
W-2 in box 10, but not received because you did not incur the expense. When figuring your exclusion, subtract any forfeitures
from the total dependent
care benefits reported by your employer. To do this, enter the forfeited amount on line 13 of Form 2441 or Schedule 2 (Form
1040A).
Forfeitures do not include amounts that you expect to receive in the future.
Effect of exclusion.
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.
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.
Earned income for the purposes of figuring the credit is defined under Earned Income Test, earlier.
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.
Example.
You remarried on December 3. Your earned income for the year was $18,000. Your new spouse's earned income for the year was
$2,000. You paid
work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. The amount of expenses
you use to figure your
credit cannot be more than $2,000 (the smaller of your earned income or that of your spouse).
Separated spouse.
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. Use only your income in figuring the earned income limit.
Surviving spouse.
If your spouse died during the year and you file a joint return as a surviving spouse, you are not considered married
for purposes of the earned
income limit. Use only your income in figuring the earned income limit.
Community property laws.
Disregard community property laws when you figure earned income for this credit.
Self-employment earnings.
If you are self-employed, include your net earnings in earned income. For purposes of the child and dependent care
credit, net earnings from
self-employment generally means the amount from line 3 of Schedule SE (either Section A or Section B) minus any deduction
for self-employment tax on
Form 1040, line 30. Include your self-employment earnings in earned income, even if they are less than $400 and you did not
file Schedule SE.
Statutory employee.
If you filed Schedule C or C-EZ to report income as a statutory employee, also include as earned income the amount
from line 1 of that Schedule C
or C-EZ.
Net loss.
You must reduce your earned income by any net loss from self-employment.
Optional method if earnings are low or a net loss.
If your net earnings from self-employment are low or you have a net loss, you may be able to figure your net earnings
by using an optional method
instead of the regular method. Get Publication 533, Self-Employment Tax, for details. If you use an optional method to figure
net earnings for
self-employment tax purposes, include those net earnings in your earned income for this credit. In this case, subtract any
deduction you claimed on
Form 1040, line 30, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings.
Student-spouse or spouse not able to care for self.
Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned
income. 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.
Spouse works.
If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that
month.
Spouse qualifies for part of month.
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.
Both spouses qualify.
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.
Example.
Jim works and keeps up a home for himself and his wife Sharon. Because of an accident, Sharon is not able to care for herself
for 11 months during
the tax year.
During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. These expenses also qualify as medical expenses.
Their adjusted
gross income is $29,000 and the entire amount is Jim's earned income.
Jim and Sharon's earned income limit is the smallest of the following amounts.
| |
Jim and Sharon's Earned Income Limit
|
|
|
1)
|
Work-related expenses Jim paid
|
$
|
|
3,300
|
|
|
2)
|
Jim's earned income
|
$
|
|
29,000
|
|
|
3)
|
Income considered earned by Sharon
(11 × $250)
|
$
|
|
2,750
|
|
Jim and Sharon can use $2,750 to figure the credit and treat the balance of $550 ($3,300 - $2,750) as a medical expense. However,
if
they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit.
There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. This limit is $3,000
for one qualifying
person, or $6,000 for two or more qualifying persons.
If you paid work-related expenses for the care of two or more qualifying persons, the $6,000 limit does not need to be divided
equally among them.
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.
Yearly limit.
The dollar limit is a yearly limit. The amount of the dollar limit remains the same no matter how long, during the
year, you have a qualifying
person in your household. Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at
any time during the year.
Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year.
Example.
In July of this year, to permit your spouse to begin a new job, you enrolled your 3-year-old daughter in
a nursery school that provides preschool childcare. You paid $300 per month for the childcare. You can use the full $1,800
you paid ($300 × 6
months) as qualified expenses since it is not more than the $3,000 yearly 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. Your reduced dollar limit is figured on lines 28 through 32 of Form 2441 or lines 22 through 26 of Schedule
2 (Form 1040A). See
Dependent Care Benefits, earlier, for information on excluding or deducting these benefits.
Example.
George is a widower with one child and earns $24,000 a year. 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. His employer pays an additional $1,000 under a qualified
dependent care benefit
plan. This $1,000 is excluded from George's income.
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. This is because his dollar limit is reduced as shown next.
| |
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
|
To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits)
by a percentage.
This percentage depends on your adjusted gross income shown on Form 1040, line 37, or Form 1040A, line 22. The following table
shows the percentage to
use based on adjusted gross income.
| |
IF your adjusted gross income is: |
THEN the |
|
| |
|
Over: |
|
|
|
But not over: |
|
percentage is: |
|
| |
|
$0
|
|
—
|
|
$15,000
|
|
35%
|
|
| |
|
15,000
|
|
—
|
|
17,000
|
|
34%
|
|
| |
|
17,000
|
|
—
|
|
19,000
|
|
33%
|
|
| |
|
19,000
|
|
—
|
|
21,000
|
|
32%
|
|
| |
|
21,000
|
|
—
|
|
23,000
|
|
31%
|
|
| |
|
23,000
|
|
—
|
|
25,000
|
|
30%
|
|
| |
|
25,000
|
|
—
|
|
27,000
|
|
29%
|
|
| |
|
27,000
|
|
—
|
|
29,000
|
|
28%
|
|
| |
|
29,000
|
|
—
|
|
31,000
|
|
27%
|
|
| |
|
31,000
|
|
—
|
|
33,000
|
|
26%
|
|
| |
|
33,000
|
|
—
|
|
35,000
|
|
25%
|
|
| |
|
35,000
|
|
—
|
|
37,000
|
|
24%
|
|
| |
|
37,000
|
|
—
|
|
39,000
|
|
23%
|
|
| |
|
39,000
|
|
—
|
|
41,000
|
|
22%
|
|
| |
|
41,000
|
|
—
|
|
43,000
|
|
21%
|
|
| |
|
43,000
|
|
—
|
|
No limit
|
|
20%
|
|
Payments for previous year's expenses.
If you had work-related expenses in 2003 that you paid in 2004, you may be able to increase the credit on your 2004
return. Attach a statement to
your form showing how you figured the additional amount from 2003. Then write “ CPYE” and the amount of the credit on the dotted line next to line
9 on Form 2441 or in the space to the left of line 9 on Schedule 2 (Form 1040A). Also write the name and taxpayer identification
number of the person
for whom you paid the prior year's expenses. Then add this credit to the amount on line 9, and replace the amount on line
9 with the total.
Example.
In 2003, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Of the $2,600, they paid $2,000 in 2003
and $600 in 2004. Their
adjusted gross income for 2003 was $30,000. Sam's earned income of $14,000 was less than Kate's earned income. A credit for
their 2003 expenses paid
in 2004 is not allowed in 2003. It is allowed for the 2004 tax year, but they must use their adjusted gross income for 2003
to compute the amount. The
worksheet they use to figure this credit is shown on page 15.
Worksheet A. Worksheet for 2003 Expenses Paid in 2004 (Note: Use this worksheet to figure the credit you may claim for 2003 expenses paid in 2004.)
|
1.
|
|
Enter your 2003 qualified expenses paid in 2003
|
1.
|
|
|
|
2.
|
|
Enter your 2003 qualified expenses paid in 2004
|
2.
|
|
|
|
3.
|
|
Add the amounts on lines 1 and 2
|
3.
|
|
|
|
4.
|
|
Enter $3,000 if care was for one qualifying person ($6,000 if for two or more)
|
4.
|
|
|
|
5.
|
|
Enter any dependent care benefits received for 2003 and excluded from your income (from line 20
of 2003 Form 2441 or Schedule 2 (Form 1040A))
|
5.
|
|
|
|
6.
|
|
Subtract amount on line 5 from amount on line 4 and enter the result
|
6.
|
|
|
|
7.
|
|
Compare your earned income for 2003 and your spouse's earned income for 2003 and enter the
smaller amount
|
7.
|
|
|
|
8.
|
|
Compare the amounts on lines 3, 6, and 7 and enter the smallest amount
|
8.
|
|
|
|
9.
|
|
Enter the amount on which you figured the credit for 2003 (from line 6 of 2003 Form 2441 or
Schedule 2 (Form 1040A))
|
9.
|
|
|
|
10.
|
|
Subtract amount on line 9 from amount on line 8 and enter the result. If zero or less, stop
here. You cannot increase your credit by any previous year's expenses
|
10.
|
|
|
|
11.
|
|
Enter your 2003 adjusted gross income (from line 35 of your 2003 Form 1040 or line 22 of your
2003 Form 1040A)
|
11.
|
|
|
|
12.
|
|
Find your 2003 adjusted gross income in the table of percentages (shown below) and enter the
corresponding decimal amount here
|
12.
|
|
|
| |
| |
|
|
IF your 2003 adjusted gross income is: |
|
THEN the |
|
|
|
|
| |
|
|
|
Over: |
|
But not over: |
|
|
percentage is: |
|
|
|
|
| |
|
|
|
$0
|
—
|
$15,000
|
|
|
35%
|
|
|
|
|
| |
|
|
|
15,000
|
—
|
17,000
|
|
|
34%
|
|
|
|
|
| |
|
|
|
17,000
|
—
|
19,000
|
|
|
33%
|
|
|
|
|
| |
|
|
|
19,000
|
—
|
21,000
|
|
|
32%
|
|
|
|
|
| |
|
|
|
21,000
|
—
|
23,000
|
|
|
31%
|
|
|
|
|
| |
|
|
|
23,000
|
—
|
25,000
|
|
|
30%
|
|
|
|
|
| |
|
|
|
25,000
|
—
|
27,000
|
|
|
29%
|
|
|
|
|
| |
|
|
|
27,000
|
—
|
29,000
|
|
|
28%
|
|
|
|
|
| |
|
|
|
29,000
|
—
|
31,000
|
|
|
27%
|
|
|
|
|
| |
|
|
|
31,000
|
—
|
33,000
|
|
|
26%
|
|
|
|
|
| |
|
|
|
33,000
|
—
|
35,000
|
|
|
25%
|
|
|
|
|
| |
|
|
|
35,000
|
—
|
37,000
|
|
|
24%
|
|
|
|
|
| |
|
|
|
37,000
|
—
|
39,000
|
|
|
23%
|
|
|
|
|
| |
|
|
|
39,000
|
—
|
41,000
|
|
|
22%
|
|
|
|
|
| |
|
|
|
41,000
|
—
|
43,000
|
|
|
21%
|
|
|
|
|
| |
|
|
|
43,000
|
—
|
No limit
|
|
|
20%
|
|
|
|
|
| |
|
13.
|
|
Multiply line 10 by line 12. Add this amount to your 2004 credit and enter the total on line 9
of your 2004 Form 2441 or Schedule 2 (Form 1040A). Write the following on the dotted line next to line 9 of Form 2441 or in
the space to the left of
line 9 on Schedule 2 (Form 1040A):
|
13.
|
|
|
| |
Worksheet A. Worksheet for 2003 Expenses Paid in 2004—Illustration for Sam and Kate's Example. (Note: Use this worksheet to figure the credit you may claim for 2003 expenses paid in 2004.)
|
1.
|
|
Enter your 2003 qualified expenses paid in 2003
|
1.
|
|
$2,000
|
|
2.
|
|
Enter your 2003 qualified expenses paid in 2004
|
2.
|
|
600
|
|
3.
|
|
Add the amounts on lines 1 and 2
|
3.
|
|
2,600
|
|
4.
|
|
Enter $3,000 if care was for one qualifying person ($6,000 if for two or more)
|
4.
|
|
3,000
|
|
5.
|
|
Enter any dependent care benefits received for 2003 and excluded from your income (from line 20
of 2003 Form 2441 or Schedule 2 (Form 1040A))
|
5.
|
|
0
|
|
6.
|
|
Subtract amount on line 5 from amount on line 4 and enter the result
|
6.
|
|
3,000
|
|
7.
|
|
Compare your earned income for 2003 and your spouse's earned income for 2003 and enter the
smaller amount
|
7.
|
|
14,000
|
|
8.
|
|
Compare the amounts on lines 3, 6, and 7 and enter the smallest amount
|
8.
|
|
2,600
|
|
9.
|
|
Enter the amount on which you figured the credit for 2003 (from line 6 of 2003 Form 2441 or
Schedule 2 (Form 1040A))
|
9.
|
|
2,000
|
|
10.
|
|
Subtract amount on line 9 from amount on line 8 and enter the result. If zero or less, stop
here. You cannot increase your credit by any previous year's expenses
|
10.
|
|
600
|
|
11.
|
|
Enter your 2003 adjusted gross income (from line 35 of your 2003 Form 1040 or line 22 of your
2003 Form 1040A)
|
11.
|
|
30,000
|
|
12.
|
|
Find your 2003 adjusted gross income in the table of percentages (shown below) and enter the
corresponding decimal amount here
|
12.
|
|
.27
|
| |
| |
|
|
IF your 2003 adjusted gross income is: |
|
THEN the |
|
|
|
|
| |
|
|
|
Over |
|
But not over |
|
|
percentage is: |
|
|
|
|
| |
|
|
|
$0
|
—
|
$15,000
|
|
|
35%
|
|
|
|
|
| |
|
|
|
15,000
|
—
|
17,000
|
|
|
34%
|
|
|
|
|
| |
|
|
|
17,000
|
—
|
19,000
|
|
|
33%
|
|
|
|
|
| |
|
|
|
19,000
|
—
|
21,000
|
|
|
32%
|
|
|
|
|
| |
|
|
|
21,000
|
—
|
23,000
|
|
|
31%
|
|
|
|
|
| |
|
|
|
23,000
|
—
|
25,000
|
|
|
30%
|
|
|
|
|
| |
|
|
|
25,000
|
—
|
27,000
|
|
|
29%
|
|
|
|
|
| |
|
|
|
27,000
|
—
|
29,000
|
|
|
28%
|
|
|
|
|
| |
|
|
|
29,000
|
—
|
31,000
|
|
|
27%
|
|
|
|
|
| |
|
|
|
31,000
|
—
|
33,000
|
|
|
26%
|
|
|
|
|
| |
|
|
|
33,000
|
—
|
35,000
|
|
|
25%
|
|
|
|
|
| |
|
|
|
35,000
|
—
|
37,000
|
|
|
24%
|
|
|
|
|
| |
|
|
|
37,000
|
—
|
39,000
|
|
|
23%
|
|
|
|
|
| |
|
|
|
39,000
|
—
|
41,000
|
|
|
22%
|
|
|
|
|
| |
|
|
|
41,000
|
—
|
43,000
|
|
|
21%
|
|
|
|
|
| |
|
|
|
43,000
|
—
|
No limit
|
|
|
20%
|
|
|
|
|
| |
|
13.
|
|
Multiply line 10 by line 12. Add this amount to your 2004 credit and enter the total on line 9
of your 2004 Form 2441 or Schedule 2 (Form 1040A). Write the following on the dotted line next to line 9 of Form 2441 or in
the space to the left of
line 9 on Schedule 2 (Form 1040A):
|
13.
|
|
$162
|
| |
Sam and Kate add the $162 from line 13 of this worksheet to their 2004 credit and enter the total on
line 9 of their Schedule 2 (Form 1040A). They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9.
To claim the credit, you can file Form 1040 or Form 1040A. You cannot claim the credit on Form 1040EZ.
Form 1040.
You must complete Form 2441 and attach it to your Form 1040. Enter the credit on your Form 1040, line 47.
Form 1040A.
You must complete Schedule 2 (Form 1040A) and attach it to your Form 1040A. Enter the credit on Form
1040A, line 29.
Limit on credit.
The amount of credit you can claim is limited to the amount of your regular tax (after reduction by
any allowable foreign tax credit) plus your alternative minimum tax, if any. For more information, see the instructions for
Form 2441 or Schedule 2
(Form 1040A).
Tax credit not refundable.
You cannot get a refund for any part of the credit that is more than this limit.
Recordkeeping. You should keep records of your work-related expenses. Also, if your
dependent or spouse is not able to care for himself or herself, your records should show both the nature and length of the
disability. Other records
you should keep to support your claim for the credit are described under Provider Identification Test, earlier.
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. If you are
a household employer,
you will need an employer identification number (EIN) and you may have to pay employment taxes. If the individuals who work
in your home are
self-employed, you are not liable for any of the taxes discussed in this section. Self-employed persons who are in business
for themselves are not
household employees. 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.
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, that person is not your employee. This control could include providing rules of conduct and appearance and requiring
regular reports. In this
case, you do not have to pay employment taxes. But, if an agency merely gives you a list of sitters and you hire one from
that list, the sitter may be
your employee.
If you have a household employee you may be subject to:
-
Social security and Medicare taxes,
-
Federal unemployment tax, and
-
Federal income tax withholding.
Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Federal unemployment
(FUTA) tax
is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Federal
income tax is
withheld from the employee's total pay if the employee asks you to do so and you agree.
For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its
instructions.
State employment tax.
You may also have to pay state unemployment tax. Contact your state unemployment tax office for information. You should
also find out whether you
need to pay or collect other state employment taxes or carry worker's compensation insurance. A list of state unemployment
tax agencies, including
addresses and phone numbers, is in Publication 926.
The following examples show how to figure the credit for child and dependent care expenses. A filled-in page 1 of Schedule
2 (Form 1040A) that
illustrates Example 1 and a filled-in Form 2441 (filed with Form 1040) that illustrates Example 2 are shown after the examples.
Example 1. Childcare — Two Children
Jerry and Ann Jones are married and keep up a home for their two preschool children, ages 2 and 4. They claim their children
as dependents and file
a joint return using Form 1040A. Their adjusted gross income (AGI) is $27,500. Jerry earned $12,500 and Ann earned $15,000.
During the year, they pay work-related expenses of $3,000 for childcare for their son Daniel at a neighbor's home and $3,200
for childcare for
their daughter Amy at Pine Street Nursery School.
They figure their credit on Schedule 2 as follows.
|
1)
|
|
Childcare provided by their neighbor
|
$
|
|
3,000
|
|
2)
|
|
Childcare provided by the nursery school
|
|
|
+3,200
|
|
3)
|
|
Total work-related expenses
|
$
|
|
6,200
|
|
4)
|
|
Dollar limit
|
$
|
|
6,000
|
|
5)
|
|
Lesser of expenses paid ($6,200) or dollar limit
($6,000)
|
$
|
|
6,000
|
|
6)
|
|
Percentage for AGI of $27,500 (28%)
|
|
|
.28
|
|
7)
|
|
Multiply the amount on line 5 by the percentage on line 6 ($6,000 x .28)
|
$
|
|
1,680
|
|
8)
|
|
Enter the amount from line 28 of Form 1040A
|
$
|
|
543
|
|
9)
|
|
Enter the amount from line 11 of Schedule 2 (Form 1040A)
|
$
|
|
0
|
|
10)
|
|
Subtract the amount on line 9 from the amount on line 8
|
$
|
|
543
|
|
11)
|
|
Credit
(Enter the smaller of line 7 or line 10)
|
$
|
|
543
|
The amount of credit they can claim is limited to their tax, $543.
Example 2. Dependent Care Benefits
Joan Thomas is divorced and has two children, ages 3 and 9. She works at ACME Computers. Her adjusted gross income (AGI) is
$29,000, and the entire
amount is earned income.
Joan's younger child (Susan) stays at her employer's on-site childcare center while she works. The benefits from this childcare
center qualify to
be excluded from her income. Her employer reports the value of this service as $3,000 for the year. This $3,000 is shown on
her Form W-2 in box 10,
but is not included in taxable wages in box 1.
A neighbor cares for Joan's older child (Seth) after school, on holidays, and during the summer. She pays her neighbor $2,400
for this care.
Joan figures her credit on Form 2441 as follows.
|
1)
|
|
Work-related expenses Joan paid
|
$
|
2,400
|
|
2)
|
|
Dollar limit (2 or more qualified individuals)
|
$
|
6,000
|
|
3)
|
|
Minus: Dependent care benefits excluded from Joan's income
|
|
-3,000
|
|
4)
|
|
Reduced dollar limit
|
$
|
3,000
|
|
5)
|
|
Lesser of expenses paid ($2,400) or dollar limit ($3,000)
|
$
|
2,400
|
|
6)
|
|
Percentage for AGI of $29,000 (28%)
|
|
.28
|
|
7)
|
|
Multiply the amount on line 5 by the percentage on line 6 ($2,400 x .28)
|
$
|
672
|
|
8)
|
|
Enter the amount from Form 1040, line 45
|
$
|
1,376
|
|
9)
|
|
Enter the amount from Form 1040, line 46
|
$
|
0
|
|
10)
|
|
Subtract line 9 from line 8
|
$
|
1,376
|
|
11)
|
|
Credit
(Enter the smaller of line 7 or line 10)
|
$
|
672
|
You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information
from the IRS in several
ways. By selecting the method that is best for you, you will have quick and easy access to tax help.
Contacting your Taxpayer Advocate.
If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate.
The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights
and resolving problems that
have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision,
they can clear up
problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.
To contact your Taxpayer Advocate:
-
Call the Taxpayer Advocate toll free at 1-877-777-4778.
-
Call, write, or fax the Taxpayer Advocate office in your area.
-
Call 1-800-829-4059 if you are a TTY/TDD user.
-
Visit
www.irs.gov/advocate.
For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS—How To Get Help With Unresolved
Tax Problems.
Free tax services.
To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. It contains a list of
free tax publications and an
index of tax topics. It also describes other free tax information services, including tax education and assistance programs
and a list of TeleTax
topics.
Internet. You can access the IRS website 24 hours a day, 7 days a week, at
www.irs.gov to:
-
E-file your return. Find out about commercial tax preparation and e-file services available free to eligible
taxpayers.
-
Check the status of your 2004 refund. Click on Where's My Refund. Be sure to wait at least 6 weeks from the date you filed your
return (3 weeks if you filed electronically). Have your 2004 tax return available because you will need to know your filing
status and the exact whole
dollar amount of your refund.
-
Download forms, instructions, and publications.
-
Order IRS products online.
-
Research your tax questions online.
-
Search publications online by topic or keyword.
-
View Internal Revenue Bulletins (IRBs) published in the last few years.
-
Figure your withholding allowances using our Form W-4 calculator.
-
Sign up to receive local and national tax news by email.
-
Get information on starting and operating a small business.
Fax. You can get over 100 of the most requested forms and instructions 24 hours a day, 7 days a week, by fax. Just call 703-368-9694
from the telephone connected to your fax machine. When you call, you will hear instructions on how to use the service. The
items you request will be
faxed to you.
For help with transmission problems, call 703-487-4608.
Long-distance charges may apply.
Phone. Many services are available by phone.
-
Ordering forms, instructions, and publications. Call 1-800-829-3676 to order current-year forms, instructions, and publications
and prior-year forms and instructions. You should receive your order within 10 days.
-
Asking tax questions. Call the IRS with your tax questions at 1-800-829-1040.
-
Solving problems. You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. An
employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Call your local
Taxpayer Assistance Center
for an appointment. To find the number, go to
www.irs.gov/localcontacts or
look in the phone book under United States Government, Internal Revenue Service.
-
TTY/TDD equipment. If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and
publications.
-
TeleTax topics. Call 1-800-829-4477 and press 2 to listen to pre-recorded messages covering various tax topics.
-
Refund information. If you would like to check the status of your 2004 refund, call 1-800-829-4477 and press 1 for automated
refund information or call 1-800-829-1954. Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if
you filed electronically).
Have your 2004 tax return available because you will need to know your filing status and the exact whole dollar amount of
your refund.
Evaluating the quality of our telephone services. To ensure that IRS representatives give accurate, courteous, and professional answers,
we use several methods to evaluate the quality of our telephone services. One method is for a second IRS representative to
sometimes listen in on or
record telephone calls. Another is to ask some callers to complete a short survey at the end of the call.
Walk-in. Many products and services are available on a walk-in basis.
-
Products. You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and
publications. Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions,
and office supply stores
have a collection of products available to print from a CD-ROM or photocopy from reproducible proofs. Also, some IRS offices
and libraries have the
Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes.
-
Services. You can walk in to your local Taxpayer Assistance Center every business day to ask tax questions or get help with a tax
problem. An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. You
can set up an appointment by
calling your local Center and, at the prompt, leaving a message requesting Everyday Tax Solutions help. A representative will
call you back within 2
business days to schedule an in-person appointment at your convenience. To find the number, go to
www.irs.gov/localcontacts or
look in the phone book under United States Government, Internal Revenue Service.
Mail. You can send your order for forms, instructions, and publications to the Distribution Center nearest to you and receive a
response
within 10 business days after your request is received. Use the address that applies to your part of the country.
-
Western part of U.S.:
Western Area Distribution Center
Rancho Cordova, CA 95743-0001
-
Central part of U.S.:
Central Area Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
-
Eastern part of U.S. and foreign addresses:
Eastern Area Distribution Center
P.O. Box 85074
Richmond, VA 23261-5074
CD-ROM for tax products. You can order Publication 1796, IRS Federal Tax Products CD-ROM, and obtain:
-
Current-year forms, instructions, and publications.
-
Prior-year forms and instructions.
-
Frequently requested tax forms that may be filled in electronically, printed out for submission, or saved for recordkeeping.
-
Internal Revenue Bulletins.
Buy the CD-ROM from National Technical Information Service (NTIS) at
www.irs.gov/cdorders for $22 (no handling fee) or call 1-877-233-6767 toll free to buy the CD-ROM for $22 (plus a $5 handling fee). The
first release is available in early January and the final release is available in late February.
CD-ROM for small businesses. Publication 3207, The Small Business Resource Guide, CD-ROM 2004, is a must for every small business owner
or any taxpayer about to start a business. This handy, interactive CD contains all the business tax forms, instructions, and
publications needed to
successfully manage a business. In addition, the CD provides other helpful information, such as how to prepare a business
plan, finding financing for
your business, and much more. The design of the CD makes finding information easy and quick and incorporates file formats
and browsers that can be run
on virtually any desktop or laptop computer.
It is available in early April. You can get a free copy by calling 1-800-829-3676 or by visiting
www.irs.gov/smallbiz.
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