Fillable Schedule M1cd - Child And Dependent Care Credit

2014 Schedule M1CD Instructions

Who is Eligible?

dependent child younger than age 13, your

not participate in a pre-tax dependent care

If you paid someone to care for your child

disabled spouse or a dependent who is

assistance program; or

or other qualifying person so that you (and

disabled.

• you were an operator of a licensed family

your spouse, if fi ling a joint return) could

day care home caring for your own child

If you were divorced, legally separated or

work or look for work, you may be eligible

who had not reached the age of six years at

lived apart from your spouse during the last

for a credit based on your qualifi ed ex-

the end of the year.

six months of 2014 and your child is not

penses. You must have had earned income

your dependent, you may take the credit if

If Your Child was Born in 2014

to take this credit.

your child meets the requirements of a quali-

If you are a married couple who had a child

Qualifi ed expenses and qualifying person

fying person for the federal credit for child

are the same as for the federal credit for

born in 2014, you may be eligible to calculate

and dependent care expenses. In this case,

child and dependent care expenses. Excep-

your credit using $3,000 of expenses for that

the other parent cannot treat the child as a

tions: See If Your Child was Born in 2014

child even if you did not have actual child

qualifying person.

(on this page) and Operators of Licensed

care expenses or if only one spouse had

Qualiﬁ ed Expenses

Family Day Care Homes (on the next page).

earned income.

Qualifi ed expenses are amounts paid for

To qualify for the credit, all of the following

If your actual child care expenses for the

household services and care of the qualifying

statements must be true:

newborn child and the lesser earning

person while you (and your spouse, if fi ling

spouse’s income was $3,000 or more ($6,000

• your household income is $39,000 or less

a joint return) worked or looked for work.

if you have two or more qualifying children),

(complete lines 1 through 6 of Schedule

Th e person who provided the care could not

do not complete the worksheet.

M1CD to determine household income);

be your spouse or a person you can claim as

• you are single, head of household, quali-

Complete the worksheet below to determine

a dependent. If your child provided the care,

fying widow(er) or married fi ling a joint

your credit If you meet all of the following

he or she must have been age 19 or older.

return (married persons fi ling separate

requirements:

returns do not qualify); and

Th e expenses are the same as those that

• You are married and fi ling a joint return;

• the qualifying person lived with you for

qualify for the federal credit for child and

more than one-half of the year.

• You had a child (or children) born in

dependent care expenses. Payments made

2014;

for you by another person or agency do not

Th e Minnesota credit is refundable, which

qualify.

• You had less than $3,000 in child care

means you may benefi t from the credit even

expenses OR either you or your spouse

if you have no state tax liability. Th is is dif-

Exceptions:

ferent from the federal credit which can be

earned less than $3,000; and

Even if you did not have actual child care

used only to off set tax.

• Neither you nor your spouse participated

expenses, you may still be eligible if you meet

in a pre-tax dependent care assistance

one of the following conditions:

Before you complete this schedule, you

program.

must complete federal Form 2441—even if

• you are married and fi ling a joint return,

you did not claim the federal credit or fi le a

your child was born in 2014, and you did

federal return.

Worksheet for Child Born in 2014

Nonresidents and part-year residents may

be eligible for this credit, which is prorated

If you completed federal Form 2441 to claim the federal credit, you must also complete a separate

by the percentage of earned income taxable

federal Form 2441 to determine your Minnesota credit. If you did not claim the federal credit or

to Minnesota.

fi le a federal return, complete a federal Form 2441 to determine your Minnesota credit. Follow the

Penalty for Fraudulently

instructions below to complete the Form 2441 you will use for Minnesota purposes.

1 Enter the amount from line 4 of Form 2441 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Claiming a Refund

2 Enter the amount from line 5 of Form 2441 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

If you fi le a return that fraudulently claims

3 Add steps 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

a credit, you will be assessed a penalty equal

to 50 percent of the fraudulently claimed

4 Determine the amount to enter on line 6 of Form 2441 as follows:

a. For the child born in 2014, enter the smaller of:

credit.

1)$3,000 or $6,000 for two children born in 2014; or

You Must Have Proof

2)the amount from step 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a

b. If you had another child (or children) born before January 1, 2014;

Save canceled checks and/or keep a detailed

enter the smallest of:

record of your payments for child and

1)your actual qualifi ed child care expenses paid for them;

dependent care expenses. Th e department

2)amount on step 1; or

may ask you to show such records if there

3)amount on step 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b

is any question concerning your Child and

c. Enter the smaller of:

Dependent Care Credit.

1)the total of steps 4a and 4b above; or

Qualifying Person

2)$6,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c

Enter the amount from 4c on line 6 of Form 2441. Complete the rest of Form 2441 and Minnesota

A qualifying person is the same as for the

Schedule M1CD to determine your Minnesota credit. Place an X in the appropriate box above line 1

federal credit for child and dependent

of Schedule M1CD.

care expenses. A qualifying person is your

1 of 2

Schedule M1cd - Child And Dependent Care Credit - 2014 Page 3

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