Forms 2441 and 1040A (Schedule 2)
The IRS has released the following 2004 forms:
IRS 2441 (Child and Dependent Care Expenses) and Instructions. Form 2441 serves two purposes: (1) it is filed with Form 1040 to determine the amount of the Dependent Care Tax Credit (DCTC) available under IRC § 21, and (2) it is used by the taxpayer to explain why the amounts in Box 10 of Form W-2 are not taxable. (The value of § 129 employer-provided dependent care benefits is shown in Box 10.)
The DCTC limits and applicable percentages to calculate the DCTC at different income levels have not been changed since 2003. The limits for employment-related dependent care expenses are still $3,000 for one qualifying person and $6.000 for two or more qualifying persons.
The only change is that some taxpayers may now elect to include nontaxable combat pay in their earned income.
IRS 1040A (Schedule 2) and Instructions. Form 1040A (Schedule 2) lists the taxpayer's Child and Dependent Care Expenses for Form 1040A Filers.
Note. When evaluating their options for tax-favored dependent care expenses in 2005, individuals should keep in mind that recent WFTRA legislation changed the "qualifying individual" definition. Under the new definition, taxpayers are no longer required to maintain a household. (WFTRA changes is effective for taxable years beginning after December 31, 2004.)
For copies of Form 2441 and Instructions, go to:
http://www.irs.gov/pub/irs-pdf/f2441.pdf (Form)
http://www.irs.gov/pub/irs-pdf/i2441.pdf (Instructions)
For copies of Form 1040A (Schedule 2) and Instructions, go to:
http://www.irs.gov/pub/irs-pdf/f1040as2.pdf (Form)
http://www.irs.gov/pub/irs-pdf/i1040as2.pdf (Instructions)