IRS Instructions for Form 2441
IRS Form 2441:Child and Dependent Care Expenses, governs the exemptions issued by the IRS to taxpayers in the event that the taxpayer pays a child care service to care for her children. This form must be submitted along with Form 1040 (or Form 1040A, as applicable).
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Instructions
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Completing the Form
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1
List the names of the persons or organizations who provided you with child care services. You'll need the name, address, Social Security or employee ID numbers, and the amount you paid for the service.
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2
List the children cared for by the services. You will need to provide the name, Social Security number, and amount of expenses for each child. You may not enter more than $3,000 per child, nor may you list over $6,000 for two or more children combined.
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3
Add the expenses.
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4
Write-in your earned annual income.
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5
Add your spouse's income, if filing jointly.
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6
List the combined child care service expenses OR your earned income OR your spouse's income, whichever is lowest.
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7
List your adjusted gross income (line 38 on IRS Tax Form 1040).
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8
Find the decimal amount on the form that corresponds to your adjusted gross income.
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9
Multiply the amount you listed on Line 6 of the form (the combined child care service expenses OR your earned income OR your spouse's income, whichever is lowest) by the decimal amount that corresponds to your gross adjusted income.
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10
List the number that you put on line 46 of Form 1040 (the combined total of the tax and alternative minimum tax you posted on lines 44 and 45 respectively).
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11
List the number you listed in line 47 of Form 1040 (foreign tax credit).
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12
Subtract the number you listed on line 11 of Form 2441 from line 10 of the same form (the combined total of the tax and alternative minimum tax and foreign tax credit, respectively). You may only get tax credit for child services if the new amount is positive.
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13
List the result you put on Line 9 OR the difference you listed on Line 12, whichever is smaller. You will also have to enter this number on Form 1040, line 48.
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14
List the amount of care you received as dependent care benefits.
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15
List the amount of money you carried over from the previous year and used during the previous tax grace period.
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16
List the amount of money you forfeited or carried over to the next year.
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17
Combine the amounts listed on lines 14, 15, and 16.
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18
List the qualified expenses from the previous year incurred on behalf of your qualifying persons (i.e. your children).
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19
Enter the amount listed on either line 17 or 18, whichever is smaller.
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20
List your earned income for the tax period.
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21
Enter your spouse's income. If this doesn't apply to you, enter your income from step 20. Those who are married, but filing separately, should refer to the separate instructions of IRS tax law for a more detailed summary of the pertinent situation of the filing individual.
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22
Enter the smallest number listed on the previous three lines.
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23
Enter $5,000, unless filing separately and listed your spouse's income on line 21, in which case you must list $2,500.
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24
If you are filing Form 1040A, skip lines 24 through 27. If not, enter the amount of dependent care benefits listed on line 14.
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25
Subtract the amount listed in the previous step from the sum listed on line 17.
Lines 26-29
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26
Enter the amount listed on line 22 OR line 23, whichever is smaller.
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27
Enter the amount on line 22 OR line 23 OR line 24, whichever is smallest. You will need to list this amount in your final tax return as well.
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28
Subtract the amount listed on line 27 from line 26. Filers of Form 1040A must list the amount in line 22 or line 23, whichever is smaller.
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29
Subtract the amount listed in line 28 from the amount listed in line 25. This number also goes on line 7 of Form 1040 and line 8 of Form 1040NR. People filing Form 1040A must subtract the amount on line 28 from line 17, and include it on line 7 of Form 1040A. All varieties of Form 1040 must have the letters "DCB" listed next to the line where the number in this line is listed on that form.
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References
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