Working Family Child Care Credit Sheet - 2004 (Page 4 of 5) in pdf

Qualifying child care expenses do not include

a relative to watch your children, you may be asked to

amounts you paid for your child to attend a public

provide additional information that shows you actu-

or private school or for activities such as gymnastics

ally paid qualifying child care expenses. Be sure to ask

or soccer. You cannot claim expenses that are paid by

for a signed receipt from your child care provider when you

someone else such as a state assistance agency. You can

pay the provider for the care.

claim only the expenses you actually paid.

Qualifying child information

Example 3: Jeff works for a company that offers de-

pendent care benefits through a plan administrator.

Enter the full name of each

Sched.

He takes advantage of this employer benefit and

–

qualifying child, the child’s

WFC

contributes $4,000 pre-tax each year to a flexible

Social Security number, date

spending arrangement (FSA) plan. He gives the plan

of birth, and his or her relationship to you using the

administrator the necessary documents so he can be

codes shown below.

reimbursed for his child care expenses. His employer

Enter the portion of the expenses you listed in the

reports the $4,000 of dependent care benefits in box 10

of his W-2. Jeff has $5,000 total in child care expenses

child care provider section that apply to each child.

for his two qualifying children. He paid $1,000 with

The amounts shown on line 9 and line 15 should al-

after-tax dollars, and he was reimbursed $4,000 from

ways be the same.

his pre-tax FSA. Jeff may claim the working family

Example 6: Bill has two children, Joe and Lane. He

child care credit based on $5,000 in qualifying child

paid two child care providers $5,000 during the year

care expenses.

for Joe and Lane’s child care. Of the $5,000 he paid,

Example 4: Lee has a five-year-old son who attends a

$3,000 was for Joe’s care and $2,000 was for Lane’s

local academy. He pays $750 per month for his son’s

care. He will enter those amounts next to each child’s

kindergarten and child care. Of the amount he pays

information.

each month, $500 is the contract price for child care,

and $250 is an additional amount he pays for the

Computation of credit

child’s education. Lee can only claim $500 per month

You must know your federal adjusted

as qualifying child care.

Sched.

gross income (AGI) to compute this

Example 5: Cate qualifies for state assistance in pay-

WFC

credit. You can find your federal AGI

ing her child care expenses. The child care provider

on your Oregon Form 40S or Form 40, line 8. Enter

charges Cate $600 per month to care for her two chil-

your federal AGI on Schedule WFC, line 16.

dren. Of the $600 per month, the state pays $450, and

Cate has a co-pay of $150. Cate cannot claim the entire

Enter the total qualifying expenses

amount because she did not pay it. She can only claim

Sched.

from Schedule WFC, line 9, on Sched-

the amount she actually paid ($150 per month).

WFC

ule WFC, line 17, and Form 40S, line

Proof of qualifying child care expenses. In order to

21b; or Form 40, line 46b.

claim this credit, you must be able to prove that you

paid the child care expenses. Acceptable proof in-

Use the table on the back of Schedule

Sched.

cludes, but is not limited to, copies of:

WFC (page 38) that matches your

WFC

household size.

• Canceled checks,

• Duplicate checks along with bank statements, and/or

For example, if your household size is 3, use Table 3 to

• Signed receipts from the child care provider.

determine the percentage you need to apply to your

The department could ask for proof during the pro-

qualifying expenses. Enter that percentage on Sched-

cessing of your tax return or any time later. If you pay

ule WFC, line 18.

Schedule WFC Relationship Codes

Child/Provider Relationship Codes

Taxpayer/Child Relationship Codes

Grandparent ....................................................GP

Son ....................................................................... S

Parent...................................................................P

Daughter ............................................................ D

Uncle ................................................................... U

Stepson .............................................................. SS

Aunt .................................................................... A

Stepdaughter ................................................... SD

Brother ...............................................................SB

Legally adopted child .................................... LA

Sister...................................................................SB

None ................................................................... N

None.................................................................... N

Other................................................................... O

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Working family child care credit

Working Family Child Care Credit Sheet - 2004 Page 4

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