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Irs E File

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Irs E File

Irs e file 19. Irs e file   Education- Related Adjustments Table of Contents Introduction Useful Items - You may want to see: Student Loan Interest DeductionStudent Loan Interest Defined Can You Claim the Deduction How Much Can You Deduct How Do You Figure the Deduction Tuition and Fees DeductionCan You Claim the Deduction What Expenses Qualify Who Is an Eligible Student Who Can Claim a Dependent's Expenses How Much Can You Deduct Educator Expenses Introduction This chapter discusses the education-related adjustment you can deduct in figuring your adjusted gross income. Irs e file This chapter covers the student loan interest deduction, tuition and fees deduction, and the deduction for educator expenses. Irs e file Useful Items - You may want to see: Publication 970 Tax Benefits for Education Student Loan Interest Deduction Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. Irs e file However, if your modified adjusted gross income (MAGI) is less than $75,000 ($155,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Irs e file For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. Irs e file This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2013. Irs e file Table 19-1 summarizes the features of the student loan interest deduction. Irs e file Table 19-1. Irs e file Student Loan Interest Deduction at a Glance Do not rely on this table alone. Irs e file Refer to the text for more details. Irs e file Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. Irs e file Loan qualifications Your student loan: •  must have been taken out solely to pay qualified education expenses, and   • cannot be from a related person or made under a qualified employer plan. Irs e file Student qualifications The student must be: • you, your spouse, or your dependent, and   • enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Irs e file Time limit on deduction You can deduct interest paid during the remaining period of your student loan. Irs e file Phaseout The amount of your deduction depends on your income level. Irs e file Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. Irs e file It includes both required and voluntary interest payments. Irs e file Qualified Student Loan This is a loan you took out solely to pay qualified education expenses (defined later) that were: For you, your spouse, or a person who was your dependent (defined in chapter 3) when you took out the loan, Paid or incurred within a reasonable period of time before or after you took out the loan, and For education provided during an academic period when the student is an eligible student. Irs e file Loans from the following sources are not qualified student loans. Irs e file A related person. Irs e file A qualified employer plan. Irs e file Exceptions. Irs e file   For purposes of the student loan interest deduction, the following are exceptions to the general rules for dependents. Irs e file An individual can be your dependent even if you are the dependent of another taxpayer. Irs e file An individual can be your dependent even if the individual files a joint return with a spouse. Irs e file An individual can be your dependent even if the individual had gross income for the year that was equal to or more than the exemption amount for the year ($3,900 for 2013). Irs e file    Reasonable period of time. Irs e file   Qualified education expenses are treated as paid or incurred within a reasonable period of time before or after you take out the loan if they are paid with the proceeds of student loans that are part of a federal postsecondary education loan program. Irs e file   Even if not paid with the proceeds of that type of loan, the expenses are treated as paid or incurred within a reasonable period of time if both of the following requirements are met. Irs e file The expenses relate to a specific academic period. Irs e file The loan proceeds are disbursed within a period that begins 90 days before the start of that academic period and ends 90 days after the end of that academic period. Irs e file   If neither of the above situations applies, the reasonable period of time is determined based on all the relevant facts and circumstances. Irs e file Academic period. Irs e file   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Irs e file In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Irs e file Eligible student. Irs e file   This is a student who was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential. Irs e file Enrolled at least half-time. Irs e file   A student was enrolled at least half-time if the student was taking at least half the normal full-time work load for his or her course of study. Irs e file   The standard for what is half of the normal full-time work load is determined by each eligible educational institution. Irs e file However, the standard may not be lower than any of those established by the U. Irs e file S. Irs e file Department of Education under the Higher Education Act of 1965. Irs e file Related person. Irs e file   You cannot deduct interest on a loan you get from a related person. Irs e file Related persons include: Your spouse, Your brothers and sisters, Your half brothers and half sisters, Your ancestors (parents, grandparents, etc. Irs e file ), Your lineal descendants (children, grandchildren, etc. Irs e file ), and Certain corporations, partnerships, trusts, and exempt organizations. Irs e file Qualified employer plan. Irs e file   You cannot deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan. Irs e file Qualified Education Expenses For purposes of the student loan interest deduction, these expenses are the total costs of attending an eligible educational institution, including graduate school. Irs e file They include amounts paid for the following items. Irs e file Tuition and fees. Irs e file Room and board. Irs e file Books, supplies, and equipment. Irs e file Other necessary expenses (such as transportation). Irs e file The cost of room and board qualifies only to the extent that it is not more than: The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student, or If greater, the actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Irs e file Eligible educational institution. Irs e file   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Irs e file S. Irs e file Department of Education. Irs e file It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Irs e file   Certain educational institutions located outside the United States also participate in the U. Irs e file S. Irs e file Department of Education's Federal Student Aid (FSA) programs. Irs e file   For purposes of the student loan interest deduction, an eligible educational institution also includes an institution conducting an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training. Irs e file   An educational institution must meet the above criteria only during the academic period(s) for which the student loan was incurred. Irs e file The deductibility of interest on the loan is not affected by the institution's subsequent loss of eligibility. Irs e file    The educational institution should be able to tell you if it is an eligible educational institution. Irs e file Adjustments to qualified education expenses. Irs e file   You must reduce your qualified education expenses by certain tax-free items (such as the tax-free part of scholarships and fellowships). Irs e file See chapter 4 of Publication 970 for details. Irs e file Include as Interest In addition to simple interest on the loan, certain loan origination fees, capitalized interest, interest on revolving lines of credit, and interest on refinanced student loans can be student loan interest if all other requirements are met. Irs e file Loan origination fee. Irs e file   In general, this is a one-time fee charged by the lender when a loan is made. Irs e file To be deductible as interest, the fee must be for the use of money rather than for property or services (such as commitment fees or processing costs) provided by the lender. Irs e file A loan origination fee treated as interest accrues over the life of the loan. Irs e file Capitalized interest. Irs e file    This is unpaid interest on a student loan that is added by the lender to the outstanding principal balance of the loan. Irs e file Interest on revolving lines of credit. Irs e file   This interest, which includes interest on credit card debt, is student loan interest if the borrower uses the line of credit (credit card) only to pay qualified education expenses. Irs e file See Qualified Education Expenses , earlier. Irs e file Interest on refinanced student loans. Irs e file   This includes interest on both: Consolidated loans—loans used to refinance more than one student loan of the same borrower, and Collapsed loans—two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. Irs e file If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified education expenses, you cannot deduct any interest paid on the refinanced loan. Irs e file Voluntary interest payments. Irs e file   These are payments made on a qualified student loan during a period when interest payments are not required, such as when the borrower has been granted a deferment or the loan has not yet entered repayment status. Irs e file Do Not Include as Interest You cannot claim a student loan interest deduction for any of the following items. Irs e file Interest you paid on a loan if, under the terms of the loan, you are not legally obligated to make interest payments. Irs e file Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. Irs e file Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs. Irs e file For more information, see Student Loan Repayment Assistance in chapter 5 of Publication 970. Irs e file Can You Claim the Deduction Generally, you can claim the deduction if all of the following requirements are met. Irs e file Your filing status is any filing status except married filing separately. Irs e file No one else is claiming an exemption for you on his or her tax return. Irs e file You are legally obligated to pay interest on a qualified student loan. Irs e file You paid interest on a qualified student loan. Irs e file Interest paid by others. Irs e file   If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. Irs e file See chapter 4 of Publication 970 for more information. Irs e file No Double Benefit Allowed You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest). Irs e file How Much Can You Deduct Your student loan interest deduction for 2013 is generally the smaller of: $2,500, or The interest you paid in 2013. Irs e file However, the amount determined above is phased out (gradually reduced) if your MAGI is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). Irs e file You cannot take a student loan interest deduction if your MAGI is $75,000 or more ($155,000 or more if you file a joint return). Irs e file For details on figuring your MAGI, see chapter 4 of Publication 970. Irs e file How Do You Figure the Deduction Generally, you figure the deduction using the Student Loan Interest Deduction Worksheet in the Form 1040 or Form 1040A instructions. Irs e file However, if you are filing Form 2555, 2555-EZ, or 4563, or you are excluding income from sources within Puerto Rico, you must complete Worksheet 4-1 in chapter 4 of Publication 970. Irs e file To help you figure your student loan interest deduction, you should receive Form 1098-E, Student Loan Interest Statement. Irs e file Generally, an institution (such as a bank or governmental agency) that received interest payments of $600 or more during 2013 on one or more qualified student loans must send Form 1098-E (or acceptable substitute) to each borrower by January 31, 2014. Irs e file For qualified student loans taken out before September 1, 2004, the institution is required to include on Form 1098-E only payments of stated interest. Irs e file Other interest payments, such as certain loan origination fees and capitalized interest, may not appear on the form you receive. Irs e file However, if you pay qualifying interest that is not included on Form 1098-E, you can also deduct those amounts. Irs e file For information on allocating payments between interest and principal, see chapter 4 of Publication 970. Irs e file To claim the deduction, enter the allowable amount on Form 1040, line 33, or Form 1040A, line 18. Irs e file Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). Irs e file You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. Irs e file The qualified expenses must be for higher education, as explained later under What Expenses Qualify . Irs e file The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. Irs e file Table 19-2 summarizes the features of the tuition and fees deduction. Irs e file You may be able to take a credit for your education expenses instead of a deduction. Irs e file You can choose the one that will give you the lower tax. Irs e file See chapter 35, Education Credits, for details about the credits. Irs e file Can You Claim the Deduction The following rules will help you determine if you can claim the tuition and fees deduction. Irs e file Who Can Claim the Deduction Generally, you can claim the tuition and fees deduction if all three of the following requirements are met. Irs e file You paid qualified education expenses of higher education in 2013 for academic periods beginning in 2013 and those beginning in the first three months of 2014. Irs e file You paid the education expenses for an eligible student. Irs e file The eligible student is yourself, your spouse, or your dependent for whom you claim an exemption (defined in chapter 3) on your tax return. Irs e file Qualified education expenses are defined under What Expenses Qualify . Irs e file Eligible students are defined later under Who Is an Eligible Student . Irs e file Who Cannot Claim the Deduction You cannot claim the tuition and fees deduction if any of the following apply. Irs e file Your filing status is married filing separately. Irs e file Another person can claim an exemption for you as a dependent on his or her tax return. Irs e file You cannot take the deduction even if the other person does not actually claim that exemption. Irs e file Your modified adjusted gross income (MAGI) is more than $80,000 ($160,000 if filing a joint return). Irs e file You (or your spouse) were a nonresident alien for any part of 2013 and the nonresident alien did not elect to be treated as a resident alien for tax purposes. Irs e file More information on nonresident aliens can be found in Publication 519, U. Irs e file S. Irs e file Tax Guide for Aliens. Irs e file You or anyone else claims an American opportunity or lifetime learning credit in 2013 with respect to expenses of the student for whom the qualified education expenses were paid. Irs e file However, a state tax credit will not disqualify you from claiming a tuition and fees deduction. Irs e file Table 19-2. Irs e file Tuition and Fees Deduction at a Glance Do not rely on this table alone. Irs e file Refer to the text for more details. Irs e file Question   Answer What is the maximum benefit?   You can reduce your income subject to tax by up to $4,000. Irs e file Where is the deduction taken?   As an adjustment to income on Form 1040, line 34, or Form 1040A, line 19. Irs e file For whom must the expenses be paid?   A student enrolled in an eligible educational institution who is either: you, your spouse, or your dependent for whom you claim an exemption. Irs e file What tuition and fees are deductible?   Tuition and fees required for enrollment or attendance at an eligible postsecondary educational institution, but not including personal, living, or family expenses, such as room and board. Irs e file What Expenses Qualify The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Irs e file Generally, the deduction is allowed for qualified education expenses paid in 2013 in connection with enrollment at an institution of higher education during 2013 or for an academic period (defined earlier under Student Loan Interest Deduction ) beginning in 2013 or in the first 3 months of 2014. Irs e file Payments with borrowed funds. Irs e file   You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. Irs e file Use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Irs e file Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Irs e file Student withdraws from class(es). Irs e file   You can claim a tuition and fees deduction for qualified education expenses not refunded when a student withdraws. Irs e file Qualified Education Expenses For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Irs e file Eligible educational institution. Irs e file   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Irs e file S. Irs e file Department of Education. Irs e file It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Irs e file The educational institution should be able to tell you if it is an eligible educational institution. Irs e file   Certain educational institutions located outside the United States also participate in the U. Irs e file S. Irs e file Department of Education's Federal Student Aid (FSA) programs. Irs e file Academic period. Irs e file    An academic period is any quarter, semester, trimester, or any other period of study as reasonably determined by an eligible educational institution. Irs e file If an eligible educational institution uses credit hours and does not have academic terms, each payment period may be treated as an academic period. Irs e file Related expenses. Irs e file   Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualified education expenses for the tuition and fees deduction only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Irs e file Prepaid expenses. Irs e file   Qualified education expenses paid in 2013 for an academic period that begins in the first three months of 2014 can be used in figuring the tuition and fees deduction. Irs e file See Academic period, earlier. Irs e file For example, if you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring the tuition and fees deduction for 2013 only if you meet all the other requirements. Irs e file    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 tuition and fees deduction. Irs e file No Double Benefit Allowed You cannot do any of the following. Irs e file Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense. Irs e file Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year. Irs e file Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). Irs e file For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Irs e file See Figuring the Taxable Portion of a Distribution in chapter 7 (Coverdell ESA) and chapter 8 (QTP) of Publication 970. Irs e file Deduct qualified education expenses that have been paid with tax-free interest on U. Irs e file S. Irs e file savings bonds (Form 8815). Irs e file See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Irs e file Deduct qualified education expenses that have been paid with tax-free educational assistance such as a scholarship, grant, or employer-provided educational assistance. Irs e file See Adjustments to qualified education expenses, later. Irs e file Adjustments to qualified education expenses. Irs e file   For each student, reduce the qualified education expenses paid by or on behalf of that student under the following rules. Irs e file The result is the amount of adjusted qualified education expenses for each student. Irs e file Tax-free educational assistance. Irs e file   For tax-free educational assistance you received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance to that academic period. Irs e file See Academic period, earlier. Irs e file   This includes: The tax-free part of scholarships and fellowships, including Pell grants (see chapter 1 of Publication 970), The tax-free part of any employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs e file Generally, any scholarship or fellowship you receive is treated as tax-free educational assistance. Irs e file However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent you include it in gross income (if you are required to file a tax return) for the year the scholarship or fellowship is received and either: The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. Irs e file 970, chapter 1. Irs e file The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. Irs e file 970, chapter 1. Irs e file You may be able to increase the combined value of your tuition and fees deduction and certain educational assistance if you include some or all of the educational assistance in income in the year it is received. Irs e file For details, see Adjustments to Qualified Education Expenses in chapter 6 of Pub. Irs e file 970. Irs e file Some tax-free educational assistance received in 2013 may be treated as a refund of qualified education expenses paid in 2013. Irs e file This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Irs e file If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. Irs e file If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. Irs e file Refunds. Irs e file   A refund of qualified education expenses may reduce adjusted qualified education expenses for the tax year or may require you to include some or all of the refund in your gross income for the year the refund is received. Irs e file See chapter 6 of Pub. Irs e file 970 for more information. Irs e file Some tax-free educational assistance received after 2013 may be treated as a refund. Irs e file See Tax-free educational assistance, earlier. Irs e file Refunds received in 2013. Irs e file    For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Irs e file Refunds received after 2013 but before your income tax return is filed. Irs e file   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. Irs e file Refunds received after 2013 and after your income tax return is filed. Irs e file   If you receive a refund after 2013 of qualified education expenses you paid in 2013 and the refund is received after you file your 2013 income tax return, you may need to include some or all of the refund in your gross income for the year the refund is received. Irs e file See chapter 6 of Pub. Irs e file 970 for more information. Irs e file Coordination with Coverdell education savings accounts and qualified tuition programs. Irs e file    Reduce your qualified education expenses by any qualified education expenses used to figure the exclusion from gross income of (a) interest received under an education savings bond program, or (b) any distribution from a Coverdell education savings account or qualified tuition program (QTP). Irs e file For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. Irs e file Amounts that do not reduce qualified education expenses. Irs e file   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Irs e file   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Irs e file The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses. Irs e file The use of the money is not restricted. Irs e file Expenses That Do Not Qualify Qualified education expenses do not include amounts paid for: Insurance, Medical expenses (including student health fees), Room and board, Transportation, or Similar personal, living, or family expenses. Irs e file This is true even if the amount must be paid to the institution as a condition of enrollment or attendance. Irs e file Sports, games, hobbies, and noncredit courses. Irs e file   Qualified education expenses generally do not include expenses that relate to any course of instruction or other education that involves sports, games or hobbies, or any noncredit course. Irs e file However, if the course of instruction or other education is part of the student's degree program, these expenses can qualify. Irs e file Comprehensive or bundled fees. Irs e file   Some eligible educational institutions combine all of their fees for an academic period into one amount. Irs e file If you do not receive, or do not have access to, an allocation showing how much you paid for qualified education expenses and how much you paid for personal expenses, such as those listed above, contact the institution. Irs e file The institution is required to make this allocation and provide you with the amount you paid (or were billed) for qualified education expenses on Form 1098-T, Tuition Statement. Irs e file See How Do You Figure the Deduction , later, for more information about Form 1098-T. Irs e file Who Is an Eligible Student For purposes of the tuition and fees deduction, an eligible student is a student who is enrolled in one or more courses at an eligible educational institution (defined earlier). Irs e file Who Can Claim a Dependent's Expenses Generally, in order to claim the tuition and fees deduction for qualified education expenses for a dependent, you must: Have paid the expenses, and Claim an exemption for the student as a dependent. Irs e file Table 19-3 summarizes who can claim the deduction. Irs e file How Much Can You Deduct The maximum tuition and fees deduction in 2013 is $4,000, $2,000, or $0, depending on the amount of your MAGI. Irs e file For details on figuring your MAGI, see chapter 6 of Publication 970. Irs e file How Do You Figure the Deduction Figure the deduction using Form 8917. Irs e file To help you figure your tuition and fees deduction, you should receive Form 1098-T, Tuition Statement. Irs e file Generally, an eligible educational institution (such as a college or university) must send Form 1098-T (or acceptable substitute) to each enrolled student by January 31, 2014. Irs e file To claim the deduction, enter the allowable amount on Form 1040, line 34, or Form 1040A, line 19, and attach your completed Form 8917. Irs e file Table 19-3. Irs e file Who Can Claim a Dependent's Expenses Do not rely on this table alone. Irs e file See Who Can Claim a Dependent's Expenses in chapter 6 of Publication 970. Irs e file IF your dependent is an eligible student and you. Irs e file . Irs e file . Irs e file AND. Irs e file . Irs e file . Irs e file THEN. Irs e file . Irs e file . Irs e file claim an exemption for your dependent you paid all qualified education expenses for your dependent only you can deduct the qualified education expenses that you paid. Irs e file Your dependent cannot take a deduction. Irs e file claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Irs e file do not claim an exemption for your dependent you paid all qualified education expenses no one is allowed to take a deduction. Irs e file do not claim an exemption for your dependent your dependent paid all qualified education expenses no one is allowed to take a deduction. Irs e file Educator Expenses If you were an eligible educator in 2013, you can deduct on Form 1040, line 23, or Form 1040A, line 16, up to $250 of qualified expenses you paid in 2013. Irs e file If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Irs e file However, neither spouse can deduct more than $250 of his or her qualified expenses on Form 1040, line 23, or Form 1040A, line 16. Irs e file You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21. Irs e file Eligible educator. Irs e file   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year. Irs e file Qualified expenses. Irs e file   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Irs e file An ordinary expense is one that is common and accepted in your educational field. Irs e file A necessary expense is one that is helpful and appropriate for your profession as an educator. Irs e file An expense does not have to be required to be considered necessary. Irs e file   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Irs e file   You must reduce your qualified expenses by the following amounts. Irs e file Excludable U. Irs e file S. Irs e file series EE and I savings bond interest from Form 8815. Irs e file See Figuring the Tax-Free Amount in chapter 10 of Publication 970. Irs e file Nontaxable qualified tuition program earnings or distributions. Irs e file See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970. Irs e file Nontaxable distribution of earnings from a Coverdell education savings account. Irs e file See Figuring the Taxable Portion of a Distribution in chapter 7 of Publication 970. Irs e file Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2. Irs e file Prev  Up  Next   Home   More Online Publications
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Irs e file Publication 503 - Main Content Table of Contents 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. Irs e file Employment Taxes for Household Employers How To Get Tax HelpLow Income Taxpayer Clinics Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR, not Form 1040EZ or Form 1040NR-EZ, and meet all the following tests. Irs e file The care must be for one or more qualifying persons who are identified on Form 2441. Irs e file (See Qualifying Person Test. Irs e file ) You (and your spouse if filing jointly) must have earned income during the year. Irs e file (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Irs e file ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Irs e file (See Work-Related Expense Test, later. Irs e file ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Irs e file 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. Irs e file 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. Irs e file See Payments to Relatives or Dependents under Work-Related Expense Test, later. Irs e file Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Irs e file If you are married, you must file a joint return, unless an exception applies to you. Irs e file See Joint Return Test, later. Irs e file You must identify the care provider on your tax return. Irs e file (See Provider Identification Test, later. Irs e file ) 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). Irs e file (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. Irs e file See Reduced Dollar Limit under How To Figure the Credit, later. Irs e file ) These tests are presented in Figure A and are also explained in detail in this publication. Irs e file Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Irs e file 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. Irs e file Dependent defined. Irs e file   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Irs e file To be your dependent, a person must be your qualifying child (or your qualifying relative). Irs e file Qualifying child. Irs e file   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Irs e file More information. Irs e file   For more information about who is a dependent or a qualifying child, see Publication 501. Irs e file Physically or mentally not able to care for oneself. Irs e file   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Irs e file Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Irs e file Person qualifying for part of year. Irs e file   You determine a person's qualifying status each day. Irs e file 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. Irs e file Also see Yearly limit under Dollar Limit, later. Irs e file Birth or death of otherwise qualifying person. Irs e file   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 more than half the time he or she was alive in 2013. Irs e file Taxpayer identification number. Irs e file   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Irs e file If the correct information is not shown, the credit may be reduced or disallowed. Irs e file Individual taxpayer identification number (ITIN) for aliens. Irs e file   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. Irs e file The ITIN is entered wherever an SSN is requested on a tax return. Irs e file If the alien does not have an ITIN, he or she must apply for one. Irs e file See Form W-7, Application for IRS Individual Taxpayer Identification Number, for details. Irs e file   An ITIN is for tax use only. Irs e file It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Irs e file S. Irs e file law. Irs e file Adoption taxpayer identification number (ATIN). Irs e file   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. Irs e file File Form W-7A, Application for Taxpayer Identification Number for Pending U. Irs e file S. Irs e file Adoptions. Irs e file Child of divorced or separated parents or parents living apart. Irs e file   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. Irs e file   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Irs e file 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. Irs e file For details and an exception for a parent who works at night, see Publication 501. Irs e file   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. Irs e file Please click here for the text description of the image. Irs e file Figure a. Irs e file Can you claim the credit Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. Irs e file Earned income. Irs e file   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Irs e file A net loss from self-employment reduces earned income. Irs e file Earned income also includes strike benefits and any disability pay you report as wages. Irs e file   Generally, only taxable compensation is included. Irs e file However, you can elect to include nontaxable combat pay in earned income. Irs e file If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Irs e file (In other words, if one of you makes the election, the other one can also make it but does not have to. Irs e file ) Including this income will give you a larger credit only if your (or your spouse's) other earned income is less than the amount entered on line 3 of Form 2441. Irs e file You should figure your credit both ways and make the election if it gives you a greater tax benefit. Irs e file    You can choose to include your nontaxable combat pay in earned income when figuring your credit for child and dependent care expenses, even if you choose not to include it in earned income for the earned income credit or the exclusion or deduction for dependent care benefits. Irs e file Members of certain religious faiths opposed to social security. Irs e file   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. Irs e file 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 Form 4029, Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits, for use by members of recognized religious groups. Irs e file   Each form is discussed here in terms of what is or is not earned income for purposes of the child and dependent care credit. Irs e file For information on the use of these forms, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Irs e file Form 4361. Irs e file   Whether or not you have an approved Form 4361, amounts you received for performing ministerial duties as an employee are earned income. Irs e file This includes wages, salaries, tips, and other taxable employee compensation. Irs e file   However, amounts you received for ministerial duties, but not as an employee, do not count as earned income. Irs e file Examples include fees for performing marriages and honoraria for delivering speeches. Irs e file   Any amount you received for work that is not related to your ministerial duties is earned income. Irs e file Form 4029. Irs e file   Whether or not you have an approved Form 4029, all wages, salaries, tips, and other taxable employee compensation are earned income. Irs e file   However, amounts you received as a self-employed individual do not count as earned income. Irs e file What is not earned income?   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarships or fellowship grants, except for those reported on Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received, Income of a nonresident alien that is not effectively connected with a U. Irs e file S. Irs e file trade or business, or Any amount received for work while an inmate in a penal institution. Irs e file Rule for student-spouse or spouse not able to care for self. Irs e file   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. Irs e file (Your spouse also must live with you for more than half the year. Irs e file )   If you are filing a joint return, this rule also applies to you. Irs e file You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Irs e file   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. Irs e file   This rule applies to only one spouse for any one month. Irs e file 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. Irs e file Full-time student. Irs e file    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. Irs e file You must have been a full-time student for some part of each of 5 calendar months during the year. Irs e file (The months need not be consecutive. Irs e file ) School. Irs e file   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Irs e file A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Irs e file Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Irs e file Expenses are considered work-related only if both of the following are true. Irs e file They allow you (and your spouse if filing jointly) to work or look for work. Irs e file They are for a qualifying person's care. Irs e file Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Irs e file If you are married, generally both you and your spouse must work or look for work. Irs e file 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. Irs e file Your work can be for others or in your own business or partnership. Irs e file It can be either full time or part time. Irs e file Work also includes actively looking for work. Irs e file However, if you do not find a job and have no earned income for the year, you cannot take this credit. Irs e file See Earned Income Test, earlier. Irs e file An expense is not considered work-related merely because you had it while you were working. Irs e file The purpose of the expense must be to allow you to work. Irs e file Whether your expenses allow you to work or look for work depends on the facts. Irs e file Example 1. Irs e file The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Irs e file Example 2. Irs e file You work during the day. Irs e file Your spouse works at night and sleeps during the day. Irs e file You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Irs e file Your expenses are considered work-related. Irs e file Volunteer work. Irs e file   For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Irs e file Work for part of year. Irs e file   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. Irs e file 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. Irs e file 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). Irs e file Temporary absence from work. Irs e file   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. Irs e file Instead, you can figure your credit including the expenses you paid for the period of absence. Irs e file   An absence of 2 weeks or less is a short, temporary absence. Irs e file An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Irs e file Example. Irs e file You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Irs e file You become ill and miss 4 months of work but receive sick pay. Irs e file You continue to pay the nanny to care for the children while you are ill. Irs e file Your absence is not a short, temporary absence, and your expenses are not considered work-related. Irs e file Part-time work. Irs e file   If you work part-time, you generally must figure your expenses for each day. Irs e file 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. Irs e file Any day when you work at least 1 hour is a day of work. Irs e file Example 1. Irs e file You work 3 days a week. Irs e file While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Irs e file You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Irs e file Your child attends the center 5 days a week. Irs e file Your work-related expenses are limited to $150 a week. Irs e file Example 2. Irs e file The facts are the same as in Example 1 except the center does not offer a 3-day option. Irs e file The entire $250 weekly fee may be a work-related expense. Irs e file Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Irs e file You do not have to choose the least expensive way of providing the care. Irs e file 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. Irs e file Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Irs e file Expenses for household services qualify if part of the services is for the care of qualifying persons. Irs e file See Household Services, later. Irs e file Expenses not for care. Irs e file   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Irs e file 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. Irs e file Otherwise, see the discussion of Expenses partly work-related, later. Irs e file   Child support payments are not for care and do not qualify for the credit. Irs e file Education. Irs e file   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Irs e file   Expenses to attend kindergarten or a higher grade are not expenses for care. Irs e file Do not use these expenses to figure your credit. Irs e file   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Irs e file   Summer school and tutoring programs are not for care. Irs e file Example 1. Irs e file 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. Irs e file The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Irs e file You can count the total cost when you figure the credit. Irs e file Example 2. Irs e file You place your 10-year-old child in a boarding school so you can work full time. Irs e file Only the part of the boarding school expense that is for the care of your child is a work-related expense. Irs e file You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Irs e file You cannot count any part of the amount you pay the school for your child's education. Irs e file Care outside your home. Irs e file   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. Irs e file Dependent care center. Irs e file   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. Irs e file   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. Irs e file Camp. Irs e file   The cost of sending your child to an overnight camp is not considered a work-related expense. Irs e file    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. Irs e file Transportation. Irs e file   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. Irs e file This includes transportation by bus, subway, taxi, or private car. Irs e file However, transportation not provided by a care provider is not for the care of a qualifying person. Irs e file 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. Irs e file Fees and deposits. Irs e file   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. Irs e file However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Irs e file Example 1. Irs e file 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. Irs e file The fee you paid is a work-related expense. Irs e file Example 2. Irs e file You placed a deposit with a preschool to reserve a place for your 3-year-old child. Irs e file You later sent your child to a different preschool and forfeited the deposit. Irs e file The forfeited deposit is not for care and so is not a work-related expense. Irs e file Household Services 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. Irs e file Definition. Irs e file   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Irs e file They include the services of a housekeeper, maid, or cook. Irs e file However, they do not include the services of a chauffeur, bartender, or gardener. Irs e file Housekeeper. Irs e file   In this publication, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Irs e file Expenses partly work-related. Irs e file   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. Irs e file To figure your credit, count only the part that is work-related. Irs e file However, you do not have to divide the expense if only a small part is for other purposes. Irs e file Example. Irs e file You pay a housekeeper to care for your 9-year-old and 15-year-old children so you can work. Irs e file The housekeeper spends most of the time doing normal household work and spends 30 minutes a day driving you to and from work. Irs e file You do not have to divide the expenses. Irs e file You can treat the entire expense of the housekeeper as work-related because the time spent driving is minimal. Irs e file 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. Irs e file However, the dollar limit (discussed later) is based on one qualifying person, not two. Irs e file Meals and lodging provided for housekeeper. Irs e file   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. Irs e file If you have extra expenses for providing lodging in your home to the housekeeper, count these as work-related expenses also. Irs e file Example. Irs e file To provide lodging to the housekeeper, you move to an apartment with an extra bedroom. Irs e file You can count the extra rent and utility expenses for the housekeeper's bedroom as work-related. Irs e file However, if your housekeeper moves into an existing bedroom in your home, you can count only the extra utility expenses as work-related. Irs e file Taxes paid on wages. Irs e file   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Irs e file For more information on a household employer's tax responsibilities, see Employment Taxes for Household Employers, later. Irs e file 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. Irs e file 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. Irs e file Joint Return Test Generally, married couples must file a joint return to take the credit. Irs e file 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. Irs e file Legally separated. Irs e file   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Irs e file You may be eligible to take the credit on your return using head of household filing status. Irs e file Married and living apart. Irs e file   You are not considered married and are eligible to take the credit if all the following apply. Irs e file You file a return apart from your spouse. Irs e file Your home is the home of a qualifying person for more than half the year. Irs e file You pay more than half the cost of keeping up your home for the year. Irs e file Your spouse does not live in your home for the last 6 months of the year. Irs e file Costs of keeping up a home. Irs e file   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. Irs e file   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Irs e file   They also do not include the purchase, permanent improvement, or replacement of property. Irs e file For example, you cannot include the cost of replacing a water heater. Irs e file However, you can include the cost of repairing a water heater. Irs e file Death of spouse. Irs e file   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. Irs e file If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's own return. Irs e file Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Irs e file Use Form 2441, Part I, to show the information. Irs e file 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). Irs e file Information needed. Irs e file   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Irs e file    If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Irs e file If the care provider is an organization, then it is the employer identification number (EIN). Irs e file   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). Irs e file In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Irs e file   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. Irs e file Getting the information. Irs e file    You can use Form W-10, Dependent Care Provider's Identification and Certification, to request the required information from the care provider. Irs e file 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, Employee's Withholding Allowance Certificate, 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 necessary information. Irs e file    You should keep this information with your tax records. Irs e file Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Irs e file Due diligence. Irs e file   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Irs e file However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Irs e file   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. Irs e file Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Irs e file Provider refusal. Irs e file    If the provider refuses to give you the identifying information, you should report on Form 2441 whatever information you have (such as the name and address). Irs e file Enter “See Attached Statement” in the columns calling for the information you do not have. Irs e file Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Irs e file Be sure to write your name and social security number on this statement. Irs e file The statement will show that you used due diligence in trying to furnish the necessary information. Irs e file U. Irs e file S. Irs e file citizens and resident aliens living abroad. Irs e file   If you are living abroad, your care provider may not have, and may not be required to get, a U. Irs e file S. Irs e file taxpayer identification number (for example, an SSN or an EIN). Irs e file If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Irs e file How To Figure the Credit Your credit is a percentage of your work-related expenses. Irs e file Your expenses are subject to the earned income limit and the dollar limit. Irs e file The percentage is based on your adjusted gross income. Irs e file Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Irs e file Expenses prepaid in an earlier year. Irs e file   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Irs e file Claim the expenses for the later year as if they were actually paid in that later year. Irs e file Expenses not paid until the following year. Irs e file   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Irs e file You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Irs e file See Payments for prior year's expenses under Amount of Credit, later. Irs e file If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Irs e file You may be able to claim a credit for them on your 2014 return. Irs e file Expenses reimbursed. Irs e file   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. Irs e file Example. Irs e file You paid work-related expenses of $3,000. Irs e file You are reimbursed $2,000 by a state social services agency. Irs e file You can use only $1,000 to figure your credit. Irs e file Medical expenses. Irs e file   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. Irs e file You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Irs e file   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. Irs e file However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Irs e file For information on medical expenses, see Publication 502, Medical and Dental Expenses. Irs e file    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Irs e file Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Irs e file See Reduced Dollar Limit, later. Irs e file But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Irs e file Dependent care benefits. Irs e file    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. Irs e file Your salary may have been reduced to pay for these benefits. Irs e file If you received benefits as an employee, they should be shown in box 10 of your Form W-2, Wage and Tax Statement. Irs e file See Statement for employee, later. Irs e file Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Irs e file   Enter the amount of these benefits on Form 2441, Part III, line 12. Irs e file Exclusion or deduction. Irs e file   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Irs e file Your employer can tell you whether your benefit plan qualifies. Irs e file To claim the exclusion, you must complete Part III of Form 2441. Irs e file You cannot use Form 1040EZ. Irs e file   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Irs e file Therefore, you would not get an exclusion from wages. Irs e file Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Irs e file To claim the deduction, you must use Form 2441. Irs e file   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). Irs e file   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. Irs e file    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. Irs e file Statement for employee. Irs e file   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. Irs e file Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Irs e file Effect of exclusion on credit. Irs e file   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. Irs e file 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. Irs e file Earned income for the purpose of figuring the credit is defined under Earned Income Test, earlier. Irs e file 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. Irs e file Example. Irs e file You remarried on December 3. Irs e file Your earned income for the year was $18,000. Irs e file Your new spouse's earned income for the year was $2,000. Irs e file You paid work-related expenses of $3,000 for the care of your 5-year-old child and qualified to claim the credit. Irs e file 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). Irs e file Separated spouse. Irs e file   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. Irs e file Use only your income in figuring the earned income limit. Irs e file Surviving spouse. Irs e file   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. Irs e file Community property laws. Irs e file   Disregard community property laws when you figure earned income for this credit. Irs e file Self-employment earnings. Irs e file   If you are self-employed, include your net earnings in earned income. Irs e file For purposes of the child and dependent care credit, net earnings from self-employment generally means the amount from Schedule SE (either Section A or Section B), line 3, minus any deduction for self-employment tax on Form 1040 or Form 1040NR, line 27. Irs e file Include your self-employment earnings in earned income, even if they are less than $400 and you did not file Schedule SE. Irs e file Clergy or church employee. Irs e file   If you are a member of the clergy or a church employee, see the Instructions for Form 2441 for details. Irs e file Statutory employee. Irs e file   If you filed Schedule C (Form 1040) or C-EZ (Form 1040) to report income as a statutory employee, also include as earned income the amount from line 1 of that Schedule C (Form 1040) or C-EZ (Form 1040). Irs e file Net loss. Irs e file   You must reduce your earned income by any net loss from self-employment. Irs e file Optional method if earnings are low or a net loss. Irs e file   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. Irs e file Get Publication 334, Tax Guide for Small Business, for details. Irs e file 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. Irs e file In this case, subtract any deduction you claimed on Form 1040 or Form 1040NR, line 27, from the total of the amounts on Schedule SE, Section B, lines 3 and 4b, to figure your net earnings. Irs e file You or your spouse is a student or not able to care for self. Irs e file   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Irs e file 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. Irs e file Spouse works. Irs e file   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Irs e file Spouse qualifies for part of month. Irs e file   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. Irs e file You are a student or not able to care for self. Irs e file   These rules also apply if you are a student or not able to care for yourself and are filing a joint return. Irs e file 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). Irs e file If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Irs e file Both spouses qualify. Irs e file   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. Irs e file Example. Irs e file Jim works and keeps up a home for himself and his wife Sharon. Irs e file Because of an accident, Sharon is not able to care for herself for 11 months during the tax year. Irs e file During the 11 months, Jim pays $3,300 of work-related expenses for Sharon's care. Irs e file These expenses also qualify as medical expenses. Irs e file Their adjusted gross income is $29,000 and the entire amount is Jim's earned income. Irs e file Jim and Sharon's earned income limit is the smallest of the following amounts. Irs e file   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. Irs e file However, if they use the $3,300 first as a medical expense, they cannot use any part of that amount to figure the credit. Irs e file Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Irs e file This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Irs e file If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Irs e file This limit does not need to be divided equally among them. Irs e file 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. Irs e file Yearly limit. Irs e file   The dollar limit is a yearly limit. Irs e file The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Irs e file Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Irs e file Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Irs e file Example 1. Irs e file You pay $500 a month for after-school care for your son. Irs e file He turned 13 on May 1 and is no longer a qualifying person. Irs e file You can use the $2,000 of expenses for his care January through April to figure your credit because it is not more than the $3,000 yearly limit. Irs e file Example 2. Irs e file 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. Irs e file You paid $300 per month for the childcare. Irs e file You can use the full $1,800 you paid ($300 × 6 months) as qualified expenses because it is not more than the $3,000 yearly limit. Irs e file 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. Irs e file Your reduced dollar limit is figured on Form 2441, Part III. Irs e file See Dependent Care Benefits, earlier, for information on excluding or deducting these benefits. Irs e file Example 1. Irs e file George is a widower with one child and earns $24,000 a year. Irs e file 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. Irs e file His employer pays an additional $1,000 under a qualified dependent care benefit plan. Irs e file This $1,000 is excluded from George's income. Irs e file 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. Irs e file This is because his dollar limit is reduced as shown next. Irs e file   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. Irs e file Randall is married and both he and his wife are employed. Irs e file Each has earned income in excess of $6,000. Irs e file They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Irs e file Randall's work-related expenses are $6,000 for the year. Irs e file 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. Irs e file Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Irs e file 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. Irs e file This is because his dollar limit is reduced as shown next. Irs e file   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits selected from employer's cafeteria plan and  excluded from Randall's income −5,000 3) Reduced dollar limit on work-related 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. Irs e file This percentage depends on your adjusted gross income shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Irs e file The following table shows the percentage to use based on adjusted gross income. Irs e file   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%   To qualify for the credit, you must have one or more qualifying persons. Irs e file You should show the expenses for each person on Form 2441, line 2, column (c). Irs e file However, it is possible a qualifying person could have no expenses and a second qualifying person could have expenses exceeding $3,000. Irs e file You should list -0- for the one person and the actual amount for the second person. Irs e file The $6,000 limit that applies to two or more qualifying persons would still be used to compute your credit unless you already excluded or deducted, in Part III of Form 2441, certain dependent care benefits paid to you (or on your behalf) by your employer. Irs e file Example. Irs e file Roger and Megan Paris have two qualifying children. Irs e file They received $1,000 of dependent care benefits from Megan's employer during 2013, but they incurred a total of $19,500 of child and dependent care expenses. Irs e file They complete Part III of Form 2441 to exclude the $1,000 from their taxable income (offsetting $1,000 of their expenses). Irs e file Roger and Megan continue to line 27 to figure their credit using the remaining $18,500 of expenses. Irs e file Line 30 tells them to complete line 2 without including any dependent care benefits. Irs e file They complete line 2 of Form 2441, listing both Susan and James, as shown in the Line 2 example above. Irs e file Line 2 Example (a) Qualifying person's name (b) Qualifying person's social security number (c) Qualified expenses you incurred and paid in 2013 for the person listed in column (a) First Last Susan Paris 123-00-6789 -0- James Paris 987-00-4321 18,500. Irs e file 00 All of Susan's expenses were covered by the $1,000 of employer-provided dependent care benefits. Irs e file However, their son James has special needs and they paid $18,500 for his care. Irs e file Line 3 imposes a $5,000 limit for two or more children ($6,000 limit, minus $1,000 already excluded from income = $5,000) and Roger and Megan continue to complete the form. Irs e file Even though line 2 indicates one of the Paris children did not have any dependent care expenses, it does not change the fact that they had two qualifying children for the purposes of Form 2441. Irs e file Payments for prior year's expenses. Irs e file   If you had work-related expenses in 2012 that you paid in 2013, you may be able to increase the credit on your 2013 return. Irs e file Attach a statement to your form showing how you figured the additional amount from 2012. Irs e file Then enter “CPYE” (Credit for Prior Year Expenses) and the amount of the credit on the dotted line next to line 9 on Form 2441. Irs e file Also enter the name and taxpayer identification number of the person for whom you paid the prior year's expenses. Irs e file Then add this credit to the amount on line 9, and replace the amount on line 9 with the total. Irs e file See Worksheet A. Irs e file Example. Irs e file In 2012, Sam and Kate had childcare expenses of $2,600 for their 12-year-old child. Irs e file Of the $2,600, they paid $2,000 in 2012 and $600 in 2013. Irs e file Their adjusted gross income for 2012 was $30,000. Irs e file Sam's earned income of $14,000 was less than Kate's earned income. Irs e file A credit for their 2012 expenses paid in 2013 is not allowed in 2012. Irs e file It is allowed for the 2013 tax year, but they must use their adjusted gross income for 2012 to compute the amount. Irs e file The filled-in Worksheet A they used to figure this credit is shown later. Irs e file Sam and Kate add the $162 from line 13 of this worksheet to their 2013 credit and enter the total on their Form 2441, line 9. Irs e file They enter “CPYE $162” and their child's name and SSN in the space to the left of line 9. Irs e file Worksheet A. Irs e file Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Irs e file 1. Irs e file   Enter your 2012 qualified expenses paid in 2012 1. Irs e file     2. Irs e file   Enter your 2012 qualified expenses paid in 2013 2. Irs e file     3. Irs e file   Add the amounts on lines 1 and 2 3. Irs e file     4. Irs e file   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Irs e file     5. Irs e file   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Irs e file     6. Irs e file   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Irs e file     7. Irs e file   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Irs e file     8. Irs e file   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Irs e file     9. Irs e file   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Irs e file     10. Irs e file   Subtract the amount on line 9 from the amount on line 8 and enter the result. Irs e file If zero or less, stop here. Irs e file You cannot increase your 2013 credit by any previous year's expenses 10. Irs e file     11. Irs e file   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Irs e file     12. Irs e file   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Irs e file             IF your 2012 adjusted gross income is:   THEN the decimal                 Over:   But not over:     amount is:                 $0 — $15,000     . Irs e file 35                 15,000 — 17,000     . Irs e file 34                 17,000 — 19,000     . Irs e file 33                 19,000 — 21,000     . Irs e file 32                 21,000 — 23,000     . Irs e file 31                 23,000 — 25,000     . Irs e file 30                 25,000 — 27,000     . Irs e file 29                 27,000 — 29,000     . Irs e file 28                 29,000 — 31,000     . Irs e file 27                 31,000 — 33,000     . Irs e file 26                 33,000 — 35,000     . Irs e file 25                 35,000 — 37,000     . Irs e file 24                 37,000 — 39,000     . Irs e file 23                 39,000 — 41,000     . Irs e file 22                 41,000 — 43,000     . Irs e file 21                 43,000 — No limit     . Irs e file 20           13. Irs e file   Multiply line 10 by line 12. Irs e file Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Irs e file Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses           Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Irs e file       Worksheet A. Irs e file Filled-in Worksheet for 2012 Expenses Paid in 2013 Use this worksheet to figure the credit you may claim for 2012 expenses paid in 2013. Irs e file 1. Irs e file   Enter your 2012 qualified expenses paid in 2012 1. Irs e file   $2,000 2. Irs e file   Enter your 2012 qualified expenses paid in 2013 2. Irs e file   600 3. Irs e file   Add the amounts on lines 1 and 2 3. Irs e file   2,600 4. Irs e file   Enter $3,000 if care was for one qualifying person ($6,000 if for two or more) 4. Irs e file   3,000 5. Irs e file   Enter any dependent care benefits received for 2012 and excluded from your income (from your 2012 Form 2441, line 25) 5. Irs e file   0 6. Irs e file   Subtract the amount on line 5 from the amount on line 4 and enter the result 6. Irs e file   3,000 7. Irs e file   Compare your earned income for 2012 and your spouse's earned income for 2012 and enter the smaller amount 7. Irs e file   14,000 8. Irs e file   Compare the amounts on lines 3, 6, and 7 and enter the smallest amount 8. Irs e file   2,600 9. Irs e file   Enter the amount on which you figured the credit for 2012 (from your 2012 Form 2441, line 6) 9. Irs e file   2,000 10. Irs e file   Subtract the amount on line 9 from the amount on line 8 and enter the result. Irs e file If zero or less, stop here. Irs e file You cannot increase your 2013 credit by any previous year's expenses 10. Irs e file   600 11. Irs e file   Enter your 2012 adjusted gross income (from your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37) 11. Irs e file   30,000 12. Irs e file   Find your 2012 adjusted gross income in the table below and enter the corresponding decimal amount here 12. Irs e file   . Irs e file 27         IF your 2012 adjusted gross income is:   THEN the decimal                 Over   But not over     amount is:                 $0 — $15,000     . Irs e file 35                 15,000 — 17,000     . Irs e file 34                 17,000 — 19,000     . Irs e file 33                 19,000 — 21,000     . Irs e file 32                 21,000 — 23,000     . Irs e file 31                 23,000 — 25,000     . Irs e file 30                 25,000 — 27,000     . Irs e file 29                 27,000 — 29,000     . Irs e file 28                 29,000 — 31,000     . Irs e file 27                 31,000 — 33,000     . Irs e file 26                 33,000 — 35,000     . Irs e file 25                 35,000 — 37,000     . Irs e file 24                 37,000 — 39,000     . Irs e file 23                 39,000 — 41,000     . Irs e file 22                 41,000 — 43,000     . Irs e file 21                 43,000 — No limit     . Irs e file 20           13. Irs e file   Multiply line 10 by line 12. Irs e file Add this amount to your 2013 credit and enter the total on your 2013 Form 2441, line 9. Irs e file Enter the following on the dotted line next to line 9 of Form 2441: “CPYE” The amount of this credit for a prior year's expenses             Also, attach a statement to your tax return showing the name and taxpayer identification number of the person for whom you paid the prior year's expenses and how you figured the credit 13. Irs e file   $162   How To Claim the Credit To claim the credit, you can file Form 1040, Form 1040A, or Form 1040NR. Irs e file You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Irs e file Form 1040, Form 1040A, or Form 1040NR. Irs e file    You must complete Form 2441 and attach it to your Form 1040, Form 1040A, or Form 1040NR. Irs e file Enter the credit on your Form 1040, line 48; Form 1040A, line 29; or Form 1040NR, line 46. Irs e file Limit on credit. Irs e file    The amount of credit you can claim is limited to your tax. Irs e file For more information, see the Instructions for Form 2441. Irs e file Tax credit not refundable. Irs e file   You cannot get a refund for any part of the credit that is more than this limit. Irs e file Recordkeeping. Irs e file You should keep records of your work-related expenses. Irs e file 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. Irs e file Other records you should keep to support your claim for the credit are described under Provider Identification Test, earlier. Irs e file 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. Irs e file If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Irs e file If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Irs e file Self-employed persons who are in business for themselves are not household employees. Irs e file 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. Irs e file 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. Irs e file This control could include providing rules of conduct and appearance and requiring regular reports. Irs e file In this case, you do not have to pay employment taxes. Irs e file 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. Irs e file If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Irs e file Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Irs e file Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Irs e file Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Irs e file For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Irs e file State employment tax. Irs e file   You may also have to pay state unemployment tax. Irs e file Contact your state unemployment tax office for information. Irs e file You should also find out whether you need to pay or collect other state employment taxes or carry worker's compensation insurance. Irs e file For a list of state unemployment tax agencies, visit the U. Irs e file S. Irs e file Department of Labor's website. Irs e file To find that website, use the link in Publication 926 or search online. Irs e file How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Irs e file Free help with your tax return. Irs e file   You can get free help preparing your return nationwide from IRS-certified volunteers. Irs e file The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs e file The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs e file Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs e file In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs e file To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs e file gov, download the IRS2Go app, or call 1-800-906-9887. Irs e file   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs e file To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs e file aarp. Irs e file org/money/taxaide or call 1-888-227-7669. Irs e file For more information on these programs, go to IRS. Irs e file gov and enter “VITA” in the search box. Irs e file Internet. Irs e file    IRS. Irs e file gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs e file Download the free IRS2Go app from the iTunes app store or from Google Play. Irs e file Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs e file Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs e file gov or download the IRS2Go app and select the Refund Status option. Irs e file The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs e file Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Irs e file You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs e file The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs e file Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs e file No need to wait on the phone or stand in line. Irs e file The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Irs e file When you reach the response screen, you can print the entire interview and the final response for your records. Irs e file New subject areas are added on a regular basis. Irs e file  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs e file gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs e file You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs e file The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs e file When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Irs e file Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Irs e file You can also ask the IRS to mail a return or an account transcript to you. Irs e file Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs e file gov or by calling 1-800-908-9946. Irs e file Tax return and tax account transcripts are generally available for the current year and the past three years. Irs e file Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs e file Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs e file If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Irs e file Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs e file gov and enter Where's My Amended Return? in the search box. Irs e file You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs e file It can take up to 3 weeks from the date you mailed it to show up in our system. Irs e file Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs e file gov. Irs e file Select the Payment tab on the front page of IRS. Irs e file gov for more information. Irs e file Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs e file Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs e file gov. Irs e file Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs e file Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs e file gov. Irs e file Request an Electronic Filing PIN by going to IRS. Irs e file gov and entering Electronic Filing PIN in the search box. Irs e file Download forms, instructions and publications, including accessible versions for people with disabilities. Irs e file Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs e file gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs e file An employee can answer questions about your tax account or help you set up a payment plan. Irs e file Before you visit, check the Office Locator on IRS. Irs e file gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs e file If you have a special need, such as a disability, you can request an appointment. Irs e file Call the local number listed in the Office Locator, or look in the phone book under Unit