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Filing Form 1040ez

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Filing Form 1040ez

Filing form 1040ez 32. Filing form 1040ez   Child and Dependent Care Credit Table of Contents Reminders Introduction Useful Items - You may want to see: Tests To Claim the CreditQualifying Person Test Earned Income Test Work-Related Expense Test Joint Return Test Provider Identification Test How To Figure the CreditFiguring Total Work-Related Expenses Earned Income Limit Dollar Limit Amount of Credit How To Claim the CreditTax credit not refundable. Filing form 1040ez Employment Taxes for Household Employers Reminders Taxpayer identification number needed for each qualifying person. Filing form 1040ez  You must include on line 2 of Form 2441 the name and taxpayer identification number (generally the social security number) of each qualifying person. Filing form 1040ez See Taxpayer identification number under Qualifying Person Test, later. Filing form 1040ez You may have to pay employment taxes. Filing form 1040ez  If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer who has to pay employment taxes. Filing form 1040ez 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. Filing form 1040ez See Employment Taxes for Household Employers , later. Filing form 1040ez Introduction This chapter discusses the credit for child and dependent care expenses and covers the following topics. Filing form 1040ez Tests you must meet to claim the credit. Filing form 1040ez How to figure the credit. Filing form 1040ez How to claim the credit. Filing form 1040ez Employment taxes you may have to pay as a household employer. Filing form 1040ez You may be able to claim the credit if you pay someone to care for your dependent who is under age 13 or for your spouse or dependent who is not able to care for himself or herself. Filing form 1040ez The credit can be up to 35% of your expenses. Filing form 1040ez To qualify, you must pay these expenses so you can work or look for work. Filing form 1040ez This credit should not be confused with the child tax credit discussed in chapter 34. Filing form 1040ez Dependent care benefits. Filing form 1040ez   If you received any dependent care benefits from your employer during the year, you may be able to exclude from your income all or part of them. Filing form 1040ez You must complete Form 2441, Part III, before you can figure the amount of your credit. Filing form 1040ez See Dependent Care Benefits under How To Figure the Credit, later. Filing form 1040ez Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 503 Child and Dependent Care Expenses 926 Household Employer's Tax Guide Form (and Instructions) 2441 Child and Dependent Care Expenses Schedule H (Form 1040) Household Employment Taxes W-7 Application for IRS Individual Taxpayer Identification Number W-10 Dependent Care Provider's Identification and Certification Tests To Claim the Credit To be able to claim the credit for child and dependent care expenses, you must file Form 1040 or Form 1040A, not Form 1040EZ, and meet all the following tests. Filing form 1040ez The care must be for one or more qualifying persons who are identified on Form 2441. Filing form 1040ez (See Qualifying Person Test . Filing form 1040ez ) You (and your spouse if filing jointly) must have earned income during the year. Filing form 1040ez (However, see Rule for student-spouse or spouse not able to care for self under Earned Income Test, later. Filing form 1040ez ) You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work. Filing form 1040ez (See Work-Related Expense Test , later. Filing form 1040ez ) You must make payments for child and dependent care to someone you (and your spouse) cannot claim as a dependent. Filing form 1040ez 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. Filing form 1040ez 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. Filing form 1040ez (See Payments to Relatives or Dependents under Work-Related Expense Test, later. Filing form 1040ez ) Your filing status may be single, head of household, or qualifying widow(er) with dependent child. Filing form 1040ez If you are married, you must file a joint return, unless an exception applies to you. Filing form 1040ez (See Joint Return Test , later. Filing form 1040ez ) You must identify the care provider on your tax return. Filing form 1040ez (See Provider Identification Test , later. Filing form 1040ez ) If you exclude or deduct dependent care benefits provided by a dependent care benefits plan, the total amount you exclude or deduct must be less than the dollar limit for qualifying expenses (generally, $3,000 if one qualifying person was cared for or $6,000 if two or more qualifying persons were cared for). Filing form 1040ez (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. Filing form 1040ez See Reduced Dollar Limit under How To Figure the Credit, later. Filing form 1040ez ) These tests are presented in Figure 32-A and are also explained in detail in this chapter. Filing form 1040ez Figure 32-A. Filing form 1040ez Can You Claim the Credit? Please click here for the text description of the image. Filing form 1040ez Figure 32-A Can You Claim the Credit? Qualifying Person Test Your child and dependent care expenses must be for the care of one or more qualifying persons. Filing form 1040ez 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. Filing form 1040ez Dependent defined. Filing form 1040ez   A dependent is a person, other than you or your spouse, for whom you can claim an exemption. Filing form 1040ez To be your dependent, a person must be your qualifying child (or your qualifying relative). Filing form 1040ez Qualifying child. Filing form 1040ez   To be your qualifying child, a child must live with you for more than half the year and meet other requirements. Filing form 1040ez More information. Filing form 1040ez   For more information about who is a dependent or a qualifying child, see chapter 3. Filing form 1040ez Physically or mentally not able to care for oneself. Filing form 1040ez   Persons who cannot dress, clean, or feed themselves because of physical or mental problems are considered not able to care for themselves. Filing form 1040ez Also, persons who must have constant attention to prevent them from injuring themselves or others are considered not able to care for themselves. Filing form 1040ez Person qualifying for part of year. Filing form 1040ez   You determine a person's qualifying status each day. Filing form 1040ez 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. Filing form 1040ez Also see Yearly limit under Dollar Limit, later. Filing form 1040ez Birth or death of otherwise qualifying person. Filing form 1040ez   In determining whether a person is a qualifying person, a person who was born or died in 2013 is treated as having lived with you for more than half of 2013 if your home was the person's home for more than half the time he or she was alive in 2013. Filing form 1040ez Taxpayer identification number. Filing form 1040ez   You must include on your return the name and taxpayer identification number (generally the social security number) of the qualifying person(s). Filing form 1040ez If the correct information is not shown, the credit may be reduced or disallowed. Filing form 1040ez Individual taxpayer identification number (ITIN) for aliens. Filing form 1040ez   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. Filing form 1040ez The ITIN is entered wherever an SSN is requested on a tax return. Filing form 1040ez To apply for an ITIN, see Form W-7. Filing form 1040ez   An ITIN is for tax use only. Filing form 1040ez It does not entitle the holder to social security benefits or change the holder's employment or immigration status under U. Filing form 1040ez S. Filing form 1040ez law. Filing form 1040ez Adoption taxpayer identification number (ATIN). Filing form 1040ez   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. Filing form 1040ez File Form W-7A, Application for Taxpayer Identification Number for Pending U. Filing form 1040ez S. Filing form 1040ez Adoptions. Filing form 1040ez Child of divorced or separated parents or parents living apart. Filing form 1040ez   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. Filing form 1040ez   The custodial parent is the parent with whom the child lived for the greater number of nights in 2013. Filing form 1040ez 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. Filing form 1040ez For details and an exception for a parent who works at night, see Pub. Filing form 1040ez 501. Filing form 1040ez   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. Filing form 1040ez Earned Income Test To claim the credit, you (and your spouse if filing jointly) must have earned income during the year. Filing form 1040ez Earned income. Filing form 1040ez   Earned income includes wages, salaries, tips, other taxable employee compensation, and net earnings from self-employment. Filing form 1040ez A net loss from self-employment reduces earned income. Filing form 1040ez Earned income also includes strike benefits and any disability pay you report as wages. Filing form 1040ez   Generally, only taxable compensation is included. Filing form 1040ez However, you can elect to include nontaxable combat pay in earned income. Filing form 1040ez If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election. Filing form 1040ez (In other words, if one of you makes the election, the other one can also make it but does not have to. Filing form 1040ez ) You should figure your credit both ways and make the election if it gives you a greater tax benefit. Filing form 1040ez Members of certain religious faiths opposed to social security. Filing form 1040ez   Certain income earned by persons who are members of certain religious faiths that are opposed to participation in Social Security Act programs and have an IRS-approved form that exempts certain income from social security and Medicare taxes may not be considered earned income for this purpose. Filing form 1040ez See Earned Income Test in Publication 503. Filing form 1040ez Not earned income. Filing form 1040ez   Earned income does not include: Pensions and annuities, Social security and railroad retirement benefits, Workers' compensation, Interest and dividends, Unemployment compensation, Scholarship or fellowship grants, except for those reported on a Form W-2 and paid to you for teaching or other services, Nontaxable workfare payments, Child support payments received by you, Income of nonresident aliens that is not effectively connected with a U. Filing form 1040ez S. Filing form 1040ez trade or business, or Any amount received for work while an inmate in a penal institution. Filing form 1040ez Rule for student-spouse or spouse not able to care for self. Filing form 1040ez   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. Filing form 1040ez (Your spouse also must live with you for more than half the year. Filing form 1040ez )   If you are filing a joint return, this rule also applies to you. Filing form 1040ez You can be treated as having earned income for any month you are a full-time student or not able to care for yourself. Filing form 1040ez   Figure the earned income of the nonworking spouse described under (1) or (2) above as explained under Earned Income Limit , later. Filing form 1040ez   This rule applies to only one spouse for any one month. Filing form 1040ez 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. Filing form 1040ez Full-time student. Filing form 1040ez   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. Filing form 1040ez You must have been a full-time student for some part of each of 5 calendar months during the year. Filing form 1040ez (The months need not be consecutive. Filing form 1040ez ) School. Filing form 1040ez   The term “school” includes high schools, colleges, universities, and technical, trade, and mechanical schools. Filing form 1040ez A school does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Filing form 1040ez Work-Related Expense Test Child and dependent care expenses must be work-related to qualify for the credit. Filing form 1040ez Expenses are considered work-related only if both of the following are true. Filing form 1040ez They allow you (and your spouse if filing jointly) to work or look for work. Filing form 1040ez They are for a qualifying person's care. Filing form 1040ez Working or Looking for Work To be work-related, your expenses must allow you to work or look for work. Filing form 1040ez If you are married, generally both you and your spouse must work or look for work. Filing form 1040ez 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. Filing form 1040ez Your work can be for others or in your own business or partnership. Filing form 1040ez It can be either full time or part time. Filing form 1040ez Work also includes actively looking for work. Filing form 1040ez However, if you do not find a job and have no earned income for the year, you cannot take this credit. Filing form 1040ez See Earned Income Test , earlier. Filing form 1040ez An expense is not considered work-related merely because you had it while you were working. Filing form 1040ez The purpose of the expense must be to allow you to work. Filing form 1040ez Whether your expenses allow you to work or look for work depends on the facts. Filing form 1040ez Example 1. Filing form 1040ez The cost of a babysitter while you and your spouse go out to eat is not normally a work-related expense. Filing form 1040ez Example 2. Filing form 1040ez You work during the day. Filing form 1040ez Your spouse works at night and sleeps during the day. Filing form 1040ez You pay for care of your 5-year-old child during the hours when you are working and your spouse is sleeping. Filing form 1040ez Your expenses are considered work-related. Filing form 1040ez Volunteer work. Filing form 1040ez    For this purpose, you are not considered to be working if you do unpaid volunteer work or volunteer work for a nominal salary. Filing form 1040ez Work for part of year. Filing form 1040ez   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. Filing form 1040ez 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. Filing form 1040ez 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). Filing form 1040ez Temporary absence from work. Filing form 1040ez   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. Filing form 1040ez Instead, you can figure your credit including the expenses you paid for the period of absence. Filing form 1040ez   An absence of 2 weeks or less is a short, temporary absence. Filing form 1040ez An absence of more than 2 weeks may be considered a short, temporary absence, depending on the circumstances. Filing form 1040ez Example. Filing form 1040ez You pay a nanny to care for your 2-year-old son and 4-year-old daughter so you can work. Filing form 1040ez You become ill and miss 4 months of work but receive sick pay. Filing form 1040ez You continue to pay the nanny to care for the children while you are ill. Filing form 1040ez Your absence is not a short, temporary absence, and your expenses are not considered work-related. Filing form 1040ez Part-time work. Filing form 1040ez   If you work part-time, you generally must figure your expenses for each day. Filing form 1040ez 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. Filing form 1040ez Any day when you work at least 1 hour is a day of work. Filing form 1040ez Example 1. Filing form 1040ez You work 3 days a week. Filing form 1040ez While you work, your 6-year-old child attends a dependent care center, which complies with all state and local regulations. Filing form 1040ez You can pay the center $150 for any 3 days a week or $250 for 5 days a week. Filing form 1040ez Your child attends the center 5 days a week. Filing form 1040ez Your work-related expenses are limited to $150 a week. Filing form 1040ez Example 2. Filing form 1040ez The facts are the same as in Example 1 except the center does not offer a 3-day option. Filing form 1040ez The entire $250 weekly fee may be a work-related expense. Filing form 1040ez Care of a Qualifying Person To be work-related, your expenses must be to provide care for a qualifying person. Filing form 1040ez You do not have to choose the least expensive way of providing care. Filing form 1040ez 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. Filing form 1040ez Expenses are for the care of a qualifying person only if their main purpose is the person's well-being and protection. Filing form 1040ez Expenses for household services qualify if part of the services is for the care of qualifying persons. Filing form 1040ez See Household services , later. Filing form 1040ez Expenses not for care. Filing form 1040ez   Expenses for care do not include amounts you pay for food, lodging, clothing, education, and entertainment. Filing form 1040ez 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. Filing form 1040ez   Child support payments are not for care and do not qualify for the credit. Filing form 1040ez Education. Filing form 1040ez   Expenses for a child in nursery school, preschool, or similar programs for children below the level of kindergarten are expenses for care. Filing form 1040ez Expenses to attend kindergarten or a higher grade are not expenses for care. Filing form 1040ez Do not use these expenses to figure your credit. Filing form 1040ez   However, expenses for before- or after-school care of a child in kindergarten or a higher grade may be expenses for care. Filing form 1040ez   Summer school and tutoring programs are not for care. Filing form 1040ez Example 1. Filing form 1040ez You take your 3-year-old child to a nursery school that provides lunch and educational activities as a part of its preschool childcare service. Filing form 1040ez The lunch and educational activities are incidental to the childcare, and their cost cannot be separated from the cost of care. Filing form 1040ez You can count the total cost when you figure the credit. Filing form 1040ez Example 2. Filing form 1040ez You place your 10-year-old child in a boarding school so you can work full time. Filing form 1040ez Only the part of the boarding school expense that is for the care of your child is a work-related expense. Filing form 1040ez You can count that part of the expense in figuring your credit if it can be separated from the cost of education. Filing form 1040ez You cannot count any part of the amount you pay the school for your child's education. Filing form 1040ez Care outside your home. Filing form 1040ez   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. Filing form 1040ez Dependent care center. Filing form 1040ez   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. Filing form 1040ez   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. Filing form 1040ez Camp. Filing form 1040ez   The cost of sending your child to an overnight camp is not considered a work-related expense. Filing form 1040ez 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. Filing form 1040ez Transportation. Filing form 1040ez   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. Filing form 1040ez This includes transportation by bus, subway, taxi, or private car. Filing form 1040ez However, transportation not provided by a care provider is not for the care of a qualifying person. Filing form 1040ez 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. Filing form 1040ez Fees and deposits. Filing form 1040ez   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. Filing form 1040ez However, a forfeited deposit is not for the care of a qualifying person if care is not provided. Filing form 1040ez Example 1. Filing form 1040ez 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. Filing form 1040ez The fee you paid is a work-related expense. Filing form 1040ez Example 2. Filing form 1040ez You placed a deposit with a preschool to reserve a place for your 3-year-old child. Filing form 1040ez You later sent your child to a different preschool and forfeited the deposit. Filing form 1040ez The forfeited deposit is not for care and so is not a work-related expense. Filing form 1040ez Household services. Filing form 1040ez   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. Filing form 1040ez   Household services are ordinary and usual services done in and around your home that are necessary to run your home. Filing form 1040ez They include the services of a housekeeper, maid, or cook. Filing form 1040ez However, they do not include the services of a chauffeur, bartender, or gardener. Filing form 1040ez See Household Services in Publication 503 for more information. Filing form 1040ez   In this chapter, the term housekeeper refers to any household employee whose services include the care of a qualifying person. Filing form 1040ez Taxes paid on wages. Filing form 1040ez   The taxes you pay on wages for qualifying child and dependent care services are work-related expenses. Filing form 1040ez See Employment Taxes for Household Employers , later. Filing form 1040ez 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. Filing form 1040ez 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. Filing form 1040ez Joint Return Test Generally, married couples must file a joint return to take the credit. Filing form 1040ez 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. Filing form 1040ez Legally separated. Filing form 1040ez   You are not considered married if you are legally separated from your spouse under a decree of divorce or separate maintenance. Filing form 1040ez You may be eligible to take the credit on your return using head of household filing status. Filing form 1040ez Married and living apart. Filing form 1040ez   You are not considered married and are eligible to take the credit if all the following apply. Filing form 1040ez You file a return apart from your spouse. Filing form 1040ez Your home is the home of a qualifying person for more than half the year. Filing form 1040ez You pay more than half the cost of keeping up your home for the year. Filing form 1040ez Your spouse does not live in your home for the last 6 months of the year. Filing form 1040ez Costs of keeping up a home. Filing form 1040ez   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. Filing form 1040ez   The costs of keeping up a home do not include payments for clothing, education, medical treatment, vacations, life insurance, transportation, or mortgage principal. Filing form 1040ez   They also do not include the purchase, permanent improvement, or replacement of property. Filing form 1040ez For example, you cannot include the cost of replacing a water heater. Filing form 1040ez However, you can include the cost of repairing a water heater. Filing form 1040ez Death of spouse. Filing form 1040ez   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. Filing form 1040ez If you do remarry before the end of the year, the credit can be claimed on your deceased spouse's return. Filing form 1040ez Provider Identification Test You must identify all persons or organizations that provide care for your child or dependent. Filing form 1040ez Use Form 2441, Part I, to show the information. Filing form 1040ez 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). Filing form 1040ez Information needed. Filing form 1040ez   To identify the care provider, you must give the provider's: Name, Address, and Taxpayer identification number. Filing form 1040ez   If the care provider is an individual, the taxpayer identification number is his or her social security number or individual taxpayer identification number. Filing form 1040ez If the care provider is an organization, then it is the employer identification number (EIN). Filing form 1040ez   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). Filing form 1040ez In this case, enter “Tax-Exempt” in the space where Form 2441 asks for the number. Filing form 1040ez   If you cannot provide all of the information or if the information is incorrect, you must be able to show that you used due diligence (discussed later) in trying to furnish the necessary information. Filing form 1040ez Getting the information. Filing form 1040ez   You can use Form W-10 to request the required information from the care provider. Filing form 1040ez If you do not use Form W-10, you can get the information from one of the other sources listed in the instructions for Form W-10 including: A copy of the provider's social security card, A copy of the provider's completed Form W-4 if he or she is your household employee, A copy of the statement furnished by your employer if the provider is your employer's dependent care plan, or A letter or invoice from the provider if it shows the information. Filing form 1040ez    You should keep this information with your tax records. Filing form 1040ez Do not send Form W-10 (or other document containing this information) to the Internal Revenue Service. Filing form 1040ez Due diligence. Filing form 1040ez   If the care provider information you give is incorrect or incomplete, your credit may not be allowed. Filing form 1040ez However, if you can show that you used due diligence in trying to supply the information, you can still claim the credit. Filing form 1040ez   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. Filing form 1040ez Care providers can be penalized if they do not provide this information to you or if they provide incorrect information. Filing form 1040ez Provider refusal. Filing form 1040ez   If the provider refuses to give you their identifying information, you should report on Form 2441 whatever information you have (such as the name and address). Filing form 1040ez Enter “See Attached Statement” in the columns calling for the information you do not have. Filing form 1040ez Then attach a statement explaining that you requested the information from the care provider, but the provider did not give you the information. Filing form 1040ez Be sure to write your name and social security number on this statement. Filing form 1040ez The statement will show that you used due diligence in trying to furnish the necessary information. Filing form 1040ez U. Filing form 1040ez S. Filing form 1040ez citizens and resident aliens living abroad. Filing form 1040ez   If you are living abroad, your care provider may not have, and may not be required to get, a U. Filing form 1040ez S. Filing form 1040ez taxpayer identification number (for example, an SSN or EIN). Filing form 1040ez If so, enter “LAFCP” (Living Abroad Foreign Care Provider) in the space for the care provider's taxpayer identification number. Filing form 1040ez How To Figure the Credit Your credit is a percentage of your work-related expenses. Filing form 1040ez Your expenses are subject to the earned income limit and the dollar limit. Filing form 1040ez The percentage is based on your adjusted gross income. Filing form 1040ez Figuring Total Work-Related Expenses To figure the credit for 2013 work-related expenses, count only those you paid by December 31, 2013. Filing form 1040ez Expenses prepaid in an earlier year. Filing form 1040ez   If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Filing form 1040ez Claim the expenses for the later year as if they were actually paid in that later year. Filing form 1040ez Expenses not paid until the following year. Filing form 1040ez   Do not count 2012 expenses that you paid in 2013 as work-related expenses for 2013. Filing form 1040ez You may be able to claim an additional credit for them on your 2013 return, but you must figure it separately. Filing form 1040ez See Payments for prior year's expenses under Amount of Credit in Publication 503. Filing form 1040ez    If you had expenses in 2013 that you did not pay until 2014, you cannot count them when figuring your 2013 credit. Filing form 1040ez You may be able to claim a credit for them on your 2014 return. Filing form 1040ez Expenses reimbursed. Filing form 1040ez   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. Filing form 1040ez Example. Filing form 1040ez You paid work-related expenses of $3,000. Filing form 1040ez You are reimbursed $2,000 by a state social services agency. Filing form 1040ez You can use only $1,000 to figure your credit. Filing form 1040ez Medical expenses. Filing form 1040ez   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. Filing form 1040ez You can use them either way, but you cannot use the same expenses to claim both a credit and a medical expense deduction. Filing form 1040ez   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. Filing form 1040ez However, if you use your total expenses to figure your medical expense deduction, you cannot use any part of them to figure your credit. Filing form 1040ez    Amounts excluded from your income under your employer's dependent care benefits plan cannot be used to claim a medical expense deduction. Filing form 1040ez Dependent Care Benefits If you receive dependent care benefits, your dollar limit for purposes of the credit may be reduced. Filing form 1040ez See Reduced Dollar Limit , later. Filing form 1040ez But, even if you cannot take the credit, you may be able to take an exclusion or deduction for the dependent care benefits. Filing form 1040ez Dependent care benefits. Filing form 1040ez   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. Filing form 1040ez Your salary may have been reduced to pay for these benefits. Filing form 1040ez If you received benefits as an employee, they should be shown in box 10 of your Form W-2. Filing form 1040ez See Statement for employee , later. Filing form 1040ez Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (Form 1065) with code O. Filing form 1040ez Enter the amount of these benefits on Form 2441, Part III, line 12. Filing form 1040ez Exclusion or deduction. Filing form 1040ez   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Filing form 1040ez Your employer can tell you whether your benefit plan qualifies. Filing form 1040ez To claim the exclusion, you must complete Part III of Form 2441. Filing form 1040ez You cannot use Form 1040EZ. Filing form 1040ez   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Filing form 1040ez Therefore, you would not get an exclusion from wages. Filing form 1040ez Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Filing form 1040ez To claim the deduction, you must use Form 2441. Filing form 1040ez   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). Filing form 1040ez 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. Filing form 1040ez See Earned Income Limit, later. Filing form 1040ez    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. Filing form 1040ez Statement for employee. Filing form 1040ez   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. Filing form 1040ez Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Filing form 1040ez Effect of exclusion on credit. Filing form 1040ez   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. Filing form 1040ez 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. Filing form 1040ez Earned income is defined under Earned Income Test , earlier. Filing form 1040ez 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. Filing form 1040ez Separated spouse. Filing form 1040ez   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. Filing form 1040ez Use only your income in figuring the earned income limit. Filing form 1040ez Surviving spouse. Filing form 1040ez   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. Filing form 1040ez Community property laws. Filing form 1040ez   You should disregard community property laws when you figure earned income for this credit. Filing form 1040ez You or your spouse is a student or not able to care for self. Filing form 1040ez   Your spouse who is either a full-time student or not able to care for himself or herself is treated as having earned income. Filing form 1040ez 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. Filing form 1040ez Spouse works. Filing form 1040ez   If your spouse works during that month, use the higher of $250 (or $500) or his or her actual earned income for that month. Filing form 1040ez Spouse qualifies for part of month. Filing form 1040ez    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. Filing form 1040ez You are a student or not able to care for self. Filing form 1040ez   These rules also apply if you are a student or not able to care for yourself and you are filing a joint return. Filing form 1040ez 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). Filing form 1040ez If you also work during that month, use the higher of $250 (or $500) or your actual earned income for that month. Filing form 1040ez Both spouses qualify. Filing form 1040ez   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. Filing form 1040ez Dollar Limit There is a dollar limit on the amount of your work-related expenses you can use to figure the credit. Filing form 1040ez This limit is $3,000 for one qualifying person, or $6,000 for two or more qualifying persons. Filing form 1040ez If you paid work-related expenses for the care of two or more qualifying persons, the applicable dollar limit is $6,000. Filing form 1040ez This $6,000 limit does not need to be divided equally among them. Filing form 1040ez 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. Filing form 1040ez Yearly limit. Filing form 1040ez   The dollar limit is a yearly limit. Filing form 1040ez The amount of the dollar limit remains the same no matter how long, during the year, you have a qualifying person in your household. Filing form 1040ez Use the $3,000 limit if you paid work-related expenses for the care of one qualifying person at any time during the year. Filing form 1040ez Use $6,000 if you paid work-related expenses for the care of more than one qualifying person at any time during the year. Filing form 1040ez 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. Filing form 1040ez Your reduced dollar limit is figured on Form 2441, Part III. Filing form 1040ez See Dependent Care Benefits , earlier, for information on excluding or deducting these benefits. Filing form 1040ez Example 1. Filing form 1040ez George is a widower with one child and earns $24,000 a year. Filing form 1040ez 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. Filing form 1040ez His employer pays an additional $1,000 under a dependent care benefit plan. Filing form 1040ez This $1,000 is excluded from George's income. Filing form 1040ez 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. Filing form 1040ez This is because his dollar limit is reduced as shown next. Filing form 1040ez   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. Filing form 1040ez Randall is married and both he and his wife are employed. Filing form 1040ez Each has earned income in excess of $6,000. Filing form 1040ez They have two children, Anne and Andy, ages 2 and 4, who attend a daycare facility licensed and regulated by the state. Filing form 1040ez Randall's work-related expenses are $6,000 for the year. Filing form 1040ez 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. Filing form 1040ez Randall has elected to take the maximum $5,000 exclusion from his salary to cover dependent care expenses through this program. Filing form 1040ez 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. Filing form 1040ez This is because his dollar limit is reduced as shown next. Filing form 1040ez   Randall's Reduced Dollar Limit 1) Maximum allowable expenses for two qualifying persons $6,000 2) Minus: Dependent care benefits Randall selects from employer's cafeteria plan and excludes from income −5,000 3) Reduced dollar limit on expenses Randall can use for the credit $1,000 Amount of Credit To determine the amount of your credit, multiply your work-related expenses (after applying the earned income and dollar limits) by a percentage. Filing form 1040ez This percentage depends on your adjusted gross income shown on Form 1040, line 38, or Form 1040A, line 22. Filing form 1040ez The following table shows the percentage to use based on adjusted gross income. Filing form 1040ez   IF your adjusted gross income is: THEN the percentage is:       Over   But not over         $0   $15,000   35%       15,000   17,000   34%       17,000   19,000   33%       19,000   21,000   32%       21,000   23,000   31%       23,000   25,000   30%       25,000   27,000   29%       27,000   29,000   28%       29,000   31,000   27%       31,000   33,000   26%       33,000   35,000   25%       35,000   37,000   24%       37,000   39,000   23%       39,000   41,000   22%       41,000   43,000   21%       43,000   No limit   20%   How To Claim the Credit To claim the credit, you can file Form 1040 or Form 1040A. Filing form 1040ez You cannot claim the credit on Form 1040EZ. Filing form 1040ez Form 1040 or 1040A. Filing form 1040ez   You must complete Form 2441 and attach it to your Form 1040 or 1040A. Filing form 1040ez Enter the credit on Form 1040, line 48, or Form 1040A, line 29. Filing form 1040ez Limit on credit. Filing form 1040ez   The amount of credit you can claim is generally limited to the amount of your tax. Filing form 1040ez For more information, see the Instructions for Form 2441. Filing form 1040ez Tax credit not refundable. Filing form 1040ez   You cannot get a refund for any part of the credit that is more than this limit. Filing form 1040ez Recordkeeping. Filing form 1040ez You should keep records of your work-related expenses. Filing form 1040ez Also, if your dependent or spouse is not able to care for himself or herself, your records should show both the nature and the length of the disability. Filing form 1040ez Other records you should keep to support your claim for the credit are described earlier under Provider Identification Test . Filing form 1040ez 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. Filing form 1040ez If you are a household employer, you will need an employer identification number (EIN) and you may have to pay employment taxes. Filing form 1040ez If the individuals who work in your home are self-employed, you are not liable for any of the taxes discussed in this section. Filing form 1040ez Self-employed persons who are in business for themselves are not household employees. Filing form 1040ez 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. Filing form 1040ez 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. Filing form 1040ez This control could include providing rules of conduct and appearance and requiring regular reports. Filing form 1040ez In this case, you do not have to pay employment taxes. Filing form 1040ez 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. Filing form 1040ez If you have a household employee, you may be subject to: Social security and Medicare taxes, Federal unemployment tax, and Federal income tax withholding. Filing form 1040ez Social security and Medicare taxes are generally withheld from the employee's pay and matched by the employer. Filing form 1040ez Federal unemployment (FUTA) tax is paid by the employer only and provides for payments of unemployment compensation to workers who have lost their jobs. Filing form 1040ez Federal income tax is withheld from the employee's total pay if the employee asks you to do so and you agree. Filing form 1040ez For more information on a household employer's tax responsibilities, see Publication 926 and Schedule H (Form 1040) and its instructions. Filing form 1040ez State employment tax. Filing form 1040ez   You may also have to pay state unemployment tax. Filing form 1040ez Contact your state unemployment tax office for information. Filing form 1040ez You should also find out whether you need to pay or collect other state employment taxes or carry workers' compensation insurance. Filing form 1040ez For a list of state unemployment tax agencies, visit the U. Filing form 1040ez S. Filing form 1040ez Department of Labor's website. Filing form 1040ez A link to that website is in Publication 926, or you can find it with an online search. Filing form 1040ez Prev  Up  Next   Home   More Online Publications
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Understanding Your CP141L Notice

You are receiving this notice because you didn’t file your return by the due date.


What you need to do

  • Send us the amount due by the date on the notice to avoid interest charges.

You may want to

  • If you think you may have reasonable cause for filing your return late, you need to provide a signed explanation outlining the circumstances which resulted in not filing your return timely.
  • Refer to the “Removal or reduction of penalties” section on your notice.

Answers to Common Questions

Q. What if I disagree with the penalty?

A. Send a written statement outlining the circumstances which resulted in not filing your return timely.

 

Page Last Reviewed or Updated: 21-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Filing Form 1040ez

Filing form 1040ez 13. Filing form 1040ez   Payment of Taxes Table of Contents How To Make Deposits When To Make Deposits Amount of DepositsSafe Harbor Rule Generally, semimonthly deposits of excise taxes are required. Filing form 1040ez A semimonthly period is the first 15 days of a month (the first semimonthly period) or the 16th through the last day of a month (the second semimonthly period). Filing form 1040ez However, no deposit is required for the situations listed below; the taxes are payable with Form 720. Filing form 1040ez The net liability for taxes listed in Part I (Form 720) does not exceed $2,500 for the quarter. Filing form 1040ez The gas guzzler tax is being paid on a one-time filing. Filing form 1040ez The liability is for taxes listed in Part II (Form 720), except for the floor stocks tax which generally requires a single deposit. Filing form 1040ez How To Make Deposits Electronic deposit requirement. Filing form 1040ez   You must use electronic funds transfer to make excise tax deposits. Filing form 1040ez Generally, electronic funds transfers are made using the Electronic Federal Tax Payment System (EFTPS). Filing form 1040ez If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Filing form 1040ez Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Filing form 1040ez   EFTPS is a free service provided by the Department of Treasury. Filing form 1040ez Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Filing form 1040ez To get more information about EFTPS or to enroll in EFTPS, visit www. Filing form 1040ez eftps. Filing form 1040ez gov or call 1-800-555-4477. Filing form 1040ez Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. Filing form 1040ez    Depositing on time. Filing form 1040ez For EFTPS deposits to be on time, you must initiate the transaction at least 1 day before the date the deposit is due (before 8:00 p. Filing form 1040ez m. Filing form 1040ez Eastern time). Filing form 1040ez You will automatically be enrolled in EFTPS when you apply for an EIN. Filing form 1040ez You will receive a separate mailing containing instructions for activating your EFTPS enrollment after you receive your EIN. Filing form 1040ez When To Make Deposits There are two methods for determining deposits: the regular method and the alternative method. Filing form 1040ez The regular method applies to all taxes in Part I of Form 720 except for communications and air transportation taxes if deposits are based on amounts billed or tickets sold, rather than on amounts actually collected. Filing form 1040ez See Alternative method below. Filing form 1040ez If you are depositing more than one tax under a method, combine all the taxes under the method and make one deposit for the semimonthly period. Filing form 1040ez Regular method. Filing form 1040ez   The deposit of tax for a semimonthly period is due by the 14th day following that period. Filing form 1040ez Generally, this is the 29th day of a month for the first semimonthly period and the 14th day of the following month for the second semimonthly period. Filing form 1040ez If the 14th or the 29th day falls on a Saturday, Sunday, or legal holiday, you must make the deposit by the immediately preceding day that is not a Saturday, Sunday, or legal holiday. Filing form 1040ez Alternative method (IRS Nos. Filing form 1040ez 22, 26, 27, and 28). Filing form 1040ez   Deposits of communications and air transportation taxes may be based on taxes included in amounts billed or tickets sold during a semimonthly period instead of on taxes actually collected during the period. Filing form 1040ez Under the alternative method, the tax included in amounts billed or tickets sold during a semimonthly period is considered collected during the first 7 days of the second following semimonthly period. Filing form 1040ez The deposit of tax is due by the 3rd banking day after the 7th day of that period. Filing form 1040ez   For an example of the alternative method, see the Instructions for Form 720. Filing form 1040ez To use the alternative method, you must keep a separate account of the tax included in amounts billed or tickets sold during the month and report on Form 720 the tax included in amounts billed or tickets sold and not the amount of tax that is actually collected. Filing form 1040ez For example, amounts billed in December, January, and February are considered collected during January, February, and March and are reported on Form 720 as the tax for the 1st quarter of the calendar year. Filing form 1040ez The separate account for each month must reflect: All items of tax included in amounts billed or tickets sold during the month, and Other items of adjustment relating to tax for prior months (within the statute of limitations on credits or refunds). Filing form 1040ez The separate account for any month cannot include an adjustment resulting from a refusal to pay or inability to collect unless the refusal has been reported to the IRS. Filing form 1040ez See Uncollected Tax Report in chapter 4. Filing form 1040ez The net amount of tax that is considered collected during the semimonthly period must be either: The net amount of tax reflected in the separate account for the corresponding semimonthly period of the preceding month, or One-half of the net amount of tax reflected in the separate account for the preceding month. Filing form 1040ez Special rule for deposits of taxes in September. Filing form 1040ez   See the Instructions for Form 720 for a special rule on deposits made in September. Filing form 1040ez Amount of Deposits Deposits for a semimonthly period generally must be at least 95% of the net tax liability for that period unless the safe harbor rule (discussed later) applies. Filing form 1040ez Generally, you do not have to make a deposit for a period in which you incurred no tax liability. Filing form 1040ez Net tax liability. Filing form 1040ez   Your net tax liability is your tax liability for the period minus any claims on Schedule C (Form 720) for the period. Filing form 1040ez You may figure your net tax liability for a semimonthly period by dividing your net liability incurred during the calendar month by two. Filing form 1040ez If you use this method, you must use it for all semimonthly periods in the calendar quarter. Filing form 1040ez Do not reduce your liability by any amounts from Form 720X. Filing form 1040ez Safe Harbor Rule The safe harbor rule applies separately to deposits under the regular method and the alternative method. Filing form 1040ez Persons who filed Form 720 for the look-back quarter (the 2nd calendar quarter preceding the current quarter) are considered to meet the semimonthly deposit requirement if the deposit for each semimonthly period in the current quarter is at least 1/6 (16. Filing form 1040ez 67%) of the net tax liability reported for the look-back quarter. Filing form 1040ez For the semimonthly period for which the additional deposit is required, the additional deposit must be at least 11/90 12. Filing form 1040ez 23%), 10/90 (11. Filing form 1040ez 12%) for non-EFTPS, of the net tax liability reported for the look-back quarter. Filing form 1040ez Also, the total deposit for that semimonthly period must be at least 1/6 (16. Filing form 1040ez 67%) of the net tax liability reported for the look-back quarter. Filing form 1040ez Exceptions. Filing form 1040ez   The safe harbor rule does not apply to: The 1st and 2nd quarters beginning on or after the effective date of an increase in the rate of tax unless the deposit of taxes for each semimonthly period in the calendar quarter is at least 1/6 (16. Filing form 1040ez 67%) of the tax liability you would have had for the look-back quarter if the increased rate of tax had been in effect for that look-back quarter, Any quarter if liability includes any tax not in effect throughout the look-back quarter, or For deposits under the alternative method, any quarter if liability includes any tax not in effect throughout the look-back quarter and the month preceding the look-back quarter. Filing form 1040ez Requirements to be met. Filing form 1040ez   For the safe harbor rule to apply, you must: Make each deposit timely at an authorized financial institution, and Pay any underpayment for the current quarter by the due date of the return. Filing form 1040ez    The IRS may withdraw the right to make deposits of tax using the safe harbor rule from any person not complying with these rules. Filing form 1040ez Tax rate increases. Filing form 1040ez   You must modify the safe harbor rule if there has been an increase in the rate of tax. Filing form 1040ez You must figure your tax liability in the look-back quarter as if the increased rate had been in effect. Filing form 1040ez To qualify for the safe harbor rule, your deposits cannot be less than 1/6 of the refigured tax liability. Filing form 1040ez Prev  Up  Next   Home   More Online Publications