Instructions For Schedule 2 (Form 1040a) 2006 (Page 2 of 3) in pdf

1. Your filing status is single, head of household, qualifying

Enter the total amount you actually paid in 2006 to the

Column (d).

widow(er), or married filing jointly. But see Married persons filing

care provider. Also, include amounts your employer paid to a third

separate returns below.

party on your behalf. It does not matter when the expenses were

incurred. Do not reduce this amount by any reimbursement you

2. The care was provided so you (and your spouse if filing a joint

received.

return) could work or look for work. However, if you did not find a

job and have no earned income for the year, you cannot take the

credit or the exclusion. But if your spouse was a student or disabled,

see the instructions for line 5.

Part II

3. The care was for one or more qualifying persons.

Credit for Child and Dependent Care

4. The person who provided the care was not your spouse, the

Expenses

parent of your qualifying child under age 13, or a person whom you

can claim as a dependent. If your child provided the care, he or she

Line 2

must have been age 19 or older by the end of 2006.

Complete columns (a) through (c) for each qualifying person. If you

5. You report the required information about the care provider

have more than two qualifying persons, attach a statement to your

on line 1 and, if taking the credit, the information about the qualify-

return with the required information. Be sure to put your name and

ing person on line 2.

social security number (SSN) on the statement. Also, enter “See

Attached” in the space to the left of line 3.

If your filing status is

Married persons filing separate returns.

married filing separately and all of the following apply, you are

Column (a).

Enter each qualifying person’s name.

considered unmarried for purposes of figuring the credit and the

You must enter the qualifying person’s SSN. Be sure

Column (b).

exclusion on Schedule 2.

•

the name and SSN entered agree with the person’s social security

You lived apart from your spouse during the last 6 months of

card. Otherwise, at the time we process your return, we may reduce

2006.

•

or disallow your credit. If the person was born and died in 2006 and

The qualifying person lived in your home more than half of

did not have an SSN, enter “Died” in column (b) and attach a copy

2006.

of the person’s birth certificate. To find out how to get an SSN, see

•

You provided over half the cost of keeping up your home.

Social Security Number (SSN) on page 18 of the Form 1040A in-

structions. If the name or SSN on the person’s social security card is

If you meet all the requirements to be treated as unmarried and

not correct, call the Social Security Administration at

meet items 2 through 5 listed earlier, you can take the credit or the

1-800-772-1213.

exclusion. If you do not meet all the requirements to be treated as

unmarried, you cannot take the credit. However, you can take the

Enter the qualified expenses you incurred and paid in

Column (c).

exclusion if you meet items 2 through 5.

2006 for the person listed in column (a). Prepaid expenses are

treated as paid in the year the care is provided. Do not include in

column (c) qualified expenses:

•

Part I

You incurred in 2006 but did not pay until 2007. You may be

Persons or Organizations Who Provided the

able to use these expenses to increase your 2007 credit.

•

Care

You incurred in 2005 but did not pay until 2006. Instead, see

the instructions for line 9.

•

You prepaid in 2006 for care to be provided in 2007. These

Line 1

expenses can only be used to figure your 2007 credit.

Complete columns (a) through (d) for each person or organization

that provided the care. You can use Form W-10 or any other source

If you paid qualified expenses for the care of two or

listed in its instructions to get the information from the care pro-

more qualifying persons, the $6,000 limit does not need

TIP

vider. If you do not give correct or complete information, your

to be divided equally. For example, if you incurred and

credit (and exclusion, if applicable) may be disallowed unless you

paid $2,500 of qualifying expenses for the care of one

can show you used due diligence in trying to get the required infor-

qualifying person and $3,500 for the care of another qualifying per-

mation.

son, you can use the total, $6,000, to figure the credit.

Due diligence.

You can show a serious and earnest effort (due dili-

Line 4

gence) to get the information by keeping in your records a Form

W-10 completed by the care provider. Or you may keep one of the

Earned income for figuring the credit includes the following

other sources of information listed in the instructions for Form

amounts. If filing a joint return, figure your and your spouse’s

W-10. If the provider does not give you the information, complete

earned income separately.

the entries you can on line 1. For example, enter the provider’s

1. The amount shown on Form 1040A, line 7, minus (a) any

name and address. Enter “See Page 2” in the columns for which you

amount included for a scholarship or fellowship grant that was not

do not have the information. Then, on the bottom of page 2, explain

reported to you on a Form W-2, and (b) any amount received as a

that the provider did not give you the information you asked for.

pension or annuity from a nonqualified deferred compensation plan

or a nongovernmental section 457(b) plan. This amount may be

Columns (a) and (b).

Enter the care provider’s name and address. If

reported in box 11 of your Form W-2. If you received such an

you were covered by your employer’s dependent care plan and your

amount but box 11 is blank, contact your employer for the amount

employer furnished the care (either at your workplace or by hiring a

received as a pension or annuity.

care provider), enter your employer’s name in column (a). Next,

enter “See W-2” in column (b). Then, leave columns (c) and (d)

2. Certain nontaxable earned income such as meals and lodging

blank. But if your employer paid a third party (not hired by your

provided for the convenience of your employer and nontaxable

employer) on your behalf to provide the care, you must give infor-

combat pay. See Pub. 503 for details.

mation on the third party in columns (a) through (d).

Special Situations

Column (c).

If the care provider is an individual, enter his or her

social security number (SSN). Otherwise, enter the provider’s em-

If you are filing a joint return, disregard community property laws.

ployer identification number (EIN). If the provider is a tax-exempt

If your spouse died in 2006, see Pub. 503. If your spouse was a

organization, enter “Tax-Exempt.”

student or disabled in 2006, see the instructions for line 5.

Sch. 2-2

Instructions For Schedule 2 (Form 1040a) 2006 Page 2

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