Forms 40, 40s, And Instructions; Schedule Wfc And Instructions - 2006 Page 28
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31Schedule WFC instructions for residents
You must complete all information on the schedule.
Qualifying child care expenses
An incomplete schedule may result in delay or denial
paid in 2006
of your working family child care credit. Your refund
may take longer to process when claiming this credit.
Provider’s full name and com-
Sched.
Reminder: Special case Oregon residents and residents
6
–
9
plete address. Enter the child
WFC
living abroad (including military) file as nonresidents
care
provider’s information
on Form 40N.
in the space provided on Schedule WFC. If you have
more than three providers, please attach a separate
sheet with the required information.
Household size calculation
Provider’s SSN or FEIN. You must include your provid-
Your household size is the
Sched.
er’s Social Security number, federal employer identifi-
1
–
5
number of people you claim as
WFC
cation number (FEIN), or individual taxpayer identifi-
exemptions on your federal tax
cation number (ITIN).
return who are related to you by blood, marriage, or
Provider’s telephone number. Enter a daytime tele-
adoption and live in your home. Household size can
phone number for the provider. Important: We need
include your child of whom you have primary cus-
a current telephone number to contact the provider.
tody, even if you allowed the child’s other parent to
Without this, the processing of your refund may be
claim the exemption on their tax return. Don’t include
delayed.
people you’re entitled to claim on your tax return
who didn’t live with you in your home during 2006
Child to provider relationship. Identify the relation-
or who aren’t related to you. For the purposes of this
ship of the child to the provider using the relationship
credit, a person cannot be counted in household size
codes on page 39. If there is no relationship between
on more than one return. Enter your household size
the child and the provider, enter “N” for “none.”
from Schedule WFC, line 5, on Form 40S, line 21a; or
Amount paid to provider. Qualifying child care
Form 40, line 45a.
expenses are those paid for your qualifying child
Example 1: Rusty and Deb are not married and are
for the primary purpose for you (and your spouse, if
the parents of two children. They maintain separate
married) to work or attend school. You can claim this
households and have joint custody of both children.
credit even if you pay your expenses with pre-tax dol-
The children live more than half the year with Deb.
lars from an employer benefit plan such as a cafeteria
Even though the children are Deb’s qualifying children,
plan or flexible spending arrangement. You must pay
she releases the dependent exemption for one child to
for the child care during 2006 for the payments to be
Rusty. Both Rusty and Deb may claim the credit based
qualifying child care expenses.
on the child care expenses they paid. However, each
Qualifying child care expenses do not include amounts
needs to calculate household size separately.
you paid for your child to attend a public or private
Deb’s household size is three (herself, one dependent
school or for after school activities or sports. You can-
child whose exemption she claims, and one dependent
not claim expenses that are paid by someone else such
child whose exemption is released to Rusty). Deb will
as a state assistance agency or a family member. You
enter “2” on line 1 of the schedule and “1” on line 2 for
can claim only the expenses you actually paid.
a total of “3” on line 5.
Example 3: Jeff works for a company that offers depen-
Rusty’s household size is one (himself). Although he
dent care benefits. He contributes $4,000 pre-tax each
claims one child on his tax return, the child did not
year to a flexible spending arrangement (FSA) plan.
live with him more than one-half of the year and is not
Jeff’s employer reports the $4,000 of dependent care
included in his household size. Rusty will enter “2” on
benefits in box 10 of his W-2. Jeff also paid $1,000 with
line 1 of the schedule and “1” on line 4 for a total of “1”
after-tax dollars. Jeff may claim the working family
on line 5.
child care credit based on $5,000 in qualifying child
care expenses.
Example 2: Jay and Rena have three qualifying chil-
dren. They also support Rena’s parents who do not live
Example 4: Lee has a five-year-old qualifying child
with them. They claim seven exemptions on their tax
who attends a local academy. He pays $750 per month
return. Jay and Rena’s household size is five, because
for his child’s kindergarten and child care. Of that
only five of them live in their home. They will enter
total, $500 is the contract price for child care, and $250
“7” on line 1 of the schedule and “2” on line 4 for a
is for the child’s education. Lee can only claim $500 per
total of “5” on line 5.
month as qualifying child care. Lee’s child attended
36
Schedule WFC instructions for residents
Have questions? Need forms? See page 40.
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