Looking for a Form 1040a Templates? Download it for free!

dependent care expenses. The $5,000 is shown on your Form W-2

Line 4

in box 10. In 2004, you incurred and were reimbursed for $4,950 of

Earned income for figuring the credit includes the following

qualified expenses. You would enter $5,000 on line 12 and $50, the

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

amount forfeited, on line 13.

earned income separately.

Line 15

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

amount included for a scholarship or fellowship grant that was not

Enter the total of all qualified expenses incurred in 2004 for the care

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

of your qualifying person(s). It does not matter when the expenses

pension or annuity from a nonqualified deferred compensation plan

were paid.

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

Example. You received $2,000 in cash under your employer’s

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

dependent care plan for 2004. The $2,000 is shown on your Form

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

W-2 in box 10. Only $900 of qualified expenses were incurred in

received as a pension or annuity.

2004 for the care of your 5-year-old dependent child. You would

enter $2,000 on line 12 and $900 on line 15.

2. Certain nontaxable earned income such as meals and lodging

provided for the convenience of your employer and nontaxable

Line 17

combat pay. See Pub. 503 for details.

Earned income for figuring the amount of dependent care benefits

Special Situations

you are able to exclude from your income includes the following

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

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

earned income separately.

If your spouse died in 2004 and had no earned income, see Pub.

503. If your spouse was a student or disabled in 2004, see the in-

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

structions for line 5.

amount included for a scholarship or fellowship grant that was not

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

Line 5

pension or annuity from a nonqualified deferred compensation plan

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

Your spouse was a student

Spouse who was a student or disabled.

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

if he or she was enrolled as a full-time student at a school during

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

any 5 months of 2004. A school does not include a night school or

received as a pension or annuity.

correspondence school. Your spouse was disabled if he or she was

2. Nontaxable combat pay if you elect to include it in earned

not capable of self-care. Figure your spouse’s earned income on a

income. However, including this income will only give you a larger

monthly basis.

exclusion if your (or your spouse’s) other earned income is less than

For each month or part of a month your spouse was a student or

the amount entered on line 16. To make the election, include all of

disabled, he or she is considered to have worked and earned in-

your nontaxable combat pay in the amount you enter on line 17 (line

come. His or her earned income for each month is considered to be

18 for your spouse if filing jointly). But this election cannot be

at least $250 ($500 if more than one qualifying person was cared for

made on the return of a taxpayer whose tax year ended before Octo-

in 2004). If your spouse also worked during that month, use the

ber 5, 2004, due to his or her death. The amount of your nontaxable

higher of $250 (or $500) or his or her actual earned income for that

combat pay should be shown in box 14 of Form(s) W-2 with

month. If, in the same month, both you and your spouse were either

code Q.

students or disabled, only one of you can be treated as having

earned income in that month.

For purposes of line 17, earned income does not include

For any month that your spouse was not a student or disabled,

any dependent care benefits shown on line 12.

use your spouse’s actual earned income if he or she worked during

the month.

Special Situations

Line 9

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

If you had qualified expenses for

Credit for prior year’s expenses.

If your spouse died in 2004 and had no earned income, see Pub.

2003 that you did not pay until 2004, you may be able to increase

503. If your spouse was a student or disabled in 2004, see the in-

the amount of your 2004 credit. To figure the credit, see the work-

structions for line 5.

sheet under Amount of Credit in Pub. 503. If you can take a credit

for your 2003 expenses, enter the amount of the credit and “CPYE”

Line 18

in the space to the left of line 9. Also, enter the name and social

If your filing status is married filing separately, see Married persons

security number of the person for whom you paid the prior year’s

filing separate returns on page 2. Are you considered unmarried

expenses next to this amount. Then, add the credit to the amount on

under that rule?

line 9 and replace the amount on line 9 with that total. Also, attach a

statement showing how you figured the credit.

Yes.

Enter your earned income (from line 17) on line

18. On line 20, enter the smaller of the amount

from line 19 or $5,000.

Part III

No.

Enter your spouse’s earned income on line 18. If

Dependent Care Benefits

your spouse was a student or disabled in 2004,

see the instructions for line 5. On line 20, enter

Line 13

the smaller of the amount from line 19 or $2,500.

If you had a flexible spending account, any amount included on line

12 that you did not receive because you did not incur the expense is

considered forfeited. Enter the forfeited amount on line 13. Do not

include amounts you expect to receive at a future date.

Example. Under your employer’s dependent care plan, you

chose to have your employer set aside $5,000 to cover your 2004

Sch. 2-3

Instructions For Schedule 2 (Form 1040a) - Child And Dependent Care Expenses For Form 1040a Filers - 2004 Page 3

Related Articles

Related forms

Related Categories