Lesson 23 Credit for Child and Dependent Care Expenses

New Forms for today Important Tax Records folder Schedule A Schedule C-ez Schedule D Schedule EIC Schedule L Schedule R* Form 2441* CA 540 Booklet * includes instruction booklet

Must know by next week Where are you going to do your volunteer work ▫Glendale Am or PM – Saturday ▫So Pasadena Sr Citizen – Thursday 5ish – 8 Your test certificates ▫Basic and Intermediate – minimum ▫Advanced and International – if needed

Next Week California Instructions Taxwise Instructions

References Pub 17 Section 32 page Section G-1 and G-2 Form 2441 Intake Form Part IV A-21 W-2 Line 10 Must complete form 2441 is there is an amount on this line

Details of Dependent Care Credit It is non refundable credit--- if your total tax (Line 60) is $O you do not get anything back Must be expenses incurred so taxpayer can work or look for work. Can be 20% to 35% of your expenses Maximum expenses is $3,000 (1) or $6000 (2) Max is $1050 to $600

Who is a Dependent Child? Under 13

Who is just a dependent? Spouse who cannot care for him/herself Child over the age of 13 that cannot care for him/herself. Would have been your dependent but the person ▫Had income over $3650 ▫Filed joint ▫You could have been claimed as a dependent

What is dependent Care Expenses? Cost of services for well being and protection.

Examples and Exercises Qualifying persons pg Qualifying for credit pg 23-7

Dependent Care Benefits When your employer pays your dependent care expenses. Might reduce your salary so you do not have to pay taxes on it.

Taxwise Be sure to check DC when listing the dependents

Bennett pg Taxwise - How Dependent Care Benefit changes the credit