Fillable Form Dcac - Dependent Care Assistance Credits

Form DCAC Instructions

What information do I have to include with my tax

your federal Schedule C, E or F must be reduced by the

return when I claim this credit?

amount of dependent care assistance used to determine

your credit.

•

Individuals. If you are filing a paper return, include a

copy of Form DCAC with your individual income tax

If you are filing a partnership, S corporation or C

return.

corporation tax return, the deduction that is allowed for

dependent care assistance (that reduces your federal

•

C corporations. If you are filing a paper return, include

taxable income) must be reduced by the amount of

a copy of Form DCAC with your corporate income tax

dependent care assistance used to determine your credit.

return.

Part III. Dependent Care Information and Referral

•

S corporations and partnerships. If you are filing a

Service Credit

paper return, include Form DCAC with your Montana

information return Form CLT-4S or PR-1 and include

In addition to the dependent care assistance credit, as an

a separate statement identifying each owner and their

employer you can also take a credit against your tax liability

share.

for providing information and referral services to assist

your Montana employees in obtaining dependent care. The

You will need to complete a separate Form DCAC for each

amount of your credit is equal to 25% (multiply by 0.25) of

source you are receiving the credit from. For example, if

the amount that you paid or incurred during the year for

you are a partner in one partnership that qualifies for this

providing dependent care information and referral services

credit, and you, as an individual, also qualify for this credit,

to your Montana employees.

you would need to complete two forms.

Part IV. Combined Credits

If you file electronically, you do not need to mail this form to

us unless we contact you for a copy.

If the credit exceeds my tax liability, can I carry any

excess credit to another tax year?

Part I. Partners in a Partnership or Shareholders

of an S Corporation

Yes. You can carry forward the unused portion of the

dependent care assistance credit and the dependent care

If you received this credit from a partnership or S

information referral service credit for up to five years.

corporation, you will need to fill out Part I in its entirety.

Your portion of the credit can be obtained from the Montana

Schedule K-1 that you received from the entity. In addition

to reporting your portion of the credit, you will need to

provide the partnership’s or S corporation’s name and

Federal Employer Identification Number.

If you are a partner or shareholder in more than one

partnership or S corporation, you will need to complete a

separate Form DCAC for each entity you are receiving the

Questions? Please call us toll free at (866) 859-2254 (in

credit from.

Helena, 444-6900).

Part II. Dependent Care Assistance Credit

If you are an employer, you can take a credit against your

tax liability for providing dependent care assistance.

In order to qualify for this credit, the dependent care

assistance you provide is required to be furnished by

a registered or licensed day care provider, and it must

be furnished according to a program that meets the

requirements of 26 IRC 129(d) (2) through (6).

You are not entitled to this credit if any of the following are

true:

•

The services were not performed in Montana; or

•

The amount of dependent care assistance is paid

according to a salary reduction plan; or

•

The amount upon which the credit is based is included

in the gross income of the employee or employees.

If you are filing an individual income tax return, the

deduction that is allowed for dependent care assistance on

Form Dcac - Dependent Care Assistance Credits - 2016 Page 2

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