Qualifying Care and Expenses

• To qualify, the dependent child must be less than 13 years old and participating in a daytime-only day care program. Children over the age of 13 are also eligible if they are physically or mentally unable to care for themselves. The day care cannot be provided by a spouse or sibling. Elementary and middle school expenses are not qualified for credit, but before- and after-school care is eligible. The care must be provided so that you can work, look for work or attend school.
  
  

Form W-10

• Have your child care provider fill out IRS Form W-10 identifying themselves as a qualified caregiver. If your child care provider will not provide the information or you are unable to reach them, you may fill out the form with as much identifying information as possible. If you cannot acquire the provider's tax identification number, leave it blank. You will be disqualified for the credit if the number is wrong.
  
  

Form 2441

• To claim the credit, fill out IRS Form 2441 outlining the nature of the child care expenses. You must provide Social Security numbers for each child to claim the credit. Attach this form and Form W-10 to your 1040, 1040A or 1040NR tax return. You cannot use Form 1040EZ to claim the child care tax credit.
  
  

Household Employer

• If you employ someone to come into your home and care for your child or qualified dependent, you may qualify as a household employer. This situation has additional tax considerations, including federal tax and FICA withholding. Review Tax Topic 756 to ensure you understand your obligations as an employer.