Fillable Schedule M1cd - Child And Dependent Care Credit

Operators of Licensed Family

Do not include on line 5:

• nontaxable scholarships, fellowships,

grants for education, including those from

Day Care Homes

• Minnesota property tax refunds

foreign sources, and tuition waivers or

Operators of licensed family day care homes

• child support payments

reductions

can claim a child care credit when they

• a dependent’s income, including Social

• nontaxable pension and annuity payments,

care for their own child if the child had not

Security

including disability payments (However,

reached the age of six years at the end of

do not include distributions received from

• any state income tax refunds not included

2014. If the child was 16 months or younger

a Roth IRA or any pension or annuity

on line 1

at the end of 2014, the credit is based on

that you funded exclusively, for which

• the dollar value of food, clothing, food

$3,000 of qualifi ed expenses ($6,000 if there

your contributions could not be taken as a

stamps and medical supplies received from

are two children age 16 months or younger).

federal tax deduction.)

government agencies

If, at the end of the year, a child was older

• lump-sum distribution reported on line 1

than 16 months but younger than age six, the

• payments from life insurance policies

of Schedule M1LS

credit is based on the amount the provider

• payments by someone else for your care by

• federally nontaxed interest and mutual

would charge for a child of the same age be-

a nurse, nursing home or hospital

fund dividends

ing cared for in the home for the same num-

• fuel assistance payments

ber of hours (up to the maximum amounts).

• income excluded by a tax treaty

• IRA rollovers

• rent reduction received for being a care-

To correctly determine your credit, you must

taker

• gift s and inheritances

complete a separate federal Form 2441 using

the above qualifi ed expense amounts instead

• military or clergy housing allowance

• nontaxable Holocaust settlement payments

of any expenses you actually paid. Include

• nontaxable military earned income, such

Line 6

the recomputed Form 2441 you used to

as combat pay

Household Income

determine your Minnesota credit when you

• strike benefi ts

If your household income on line 6 is more

fi le Form M1.

• the gain on the sale of your home excluded

than $39,000, do not continue. You do not

Place an X in the appropriate box above line

from federal income

qualify for the Minnesota Child and Depen-

1 and enter your day care license number in

dent Care Credit.

• debt forgiveness income not included in

the space provided.

federal adjusted gross income

Line 7

Also include on line 5 the following losses

Line Instructions

Credit Amount

and deductions to the extent they reduced

Round amounts to the nearest whole dollar.

Th e table for line 7 is on the back of Schedule

your federal adjusted gross income:

M1CD. Using the amount on line 6 and the

• tuition and fees deduction

Line 1

number of qualifying persons (see Qualify-

Federal Adjusted Gross Income

• educator expenses deduction

ing person on the front of this sheet), fi nd the

Enter your federal adjusted gross income

• health savings account, domestic produc-

amount to enter on line 7.

from your 2014 federal return. If the amount

tion activities and the Archer MSA deduc-

Questions? Need forms?

is a net loss (a negative amount), enter the

tions

negative number. Put parentheses around a

• capital loss carryforward

Forms and information are available on

negative number.

our website at

• net operating loss carryforward/carryback

Or you may order forms anytime by calling

If you did not fi le a 2014 federal return,

• the amount of a passive activity loss that

651-296-4444 or 1-800-657-3676.

is not disallowed as a result of section

obtain a federal return and instructions to

469, paragraph (i) or (m) of the Internal

determine what your federal ad justed gross

If you have questions and need to speak to a

Revenue Code and the amount of passive

income would have been.

representative, call 651-296-3781 or

activity loss carryover allowed under sec-

1-800-652-9094. Send us an email at Indi-

tion 469(b) of the Internal Revenue Code

Line 5

vidual.incometax@state.mn.us.

• prior year passive activity loss carryfor-

Additional Nontaxable Income

ward claimed in 2014 for federal purposes

Enter your total nontaxable income re-

ceived in 2014 that is not included on lines 1

through 4. Enter the type(s) of income in the

space provided on line 5.

Common examples include:

• employer paid education or adoption

expenses

• workers’ compensation benefi ts

• your contributions to an employee elective

deferral plan, such as a 401(k), 403(b), 457

deferred compensation or SIMPLE/SEP

plan

• contributions made to a dependent care

account (as shown on your W-2 form)

and/or medical expense account

• nontaxable employee transit and parking

expenses

• veterans’ benefi ts

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Schedule M1cd - Child And Dependent Care Credit - 2014 Page 4

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