Schedule M1cd - Child And Dependent Care Credit

2017 Schedule M1CD Instructions

Before you complete this schedule,

If you were divorced, legally separated, or

What if my child was born in

complete federal Form 2441 even if you

lived apart from your spouse during the last

2017?

did not claim the federal credit.

six months of 2017 and your child is not

You may be eligible to calculate your credit

your dependent, you may claim the credit if

Am I eligible?

using $3,000 of expenses for your child

your child meets the requirements of a quali-

born in 2017, even if you did not have actual

If you (and your spouse if filing a joint

fying person for the federal credit. In this

expenses for that child or only one spouse

return) had earned income, you may be

case, the other parent cannot treat the child

had earned income.

eligible for a credit based on your qualified

as a qualifying person.

expenses. You must have documentation

You must meet all of the following require-

showing the expenses you paid for one or

What expenses qualify?

ments:

both of the following:

Expenses that qualify for the federal credit

• You are married and filing a joint return

• Someone to care for your child or other

for child and dependent care expenses qual-

• You had a child (or children) born in

qualifying person

ify for the Minnesota Child and Dependent

2017

• Someone for household services

Care Credit. Generally, qualifying expenses

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

To qualify for the credit, all of the follow-

are expenses you paid for one or both of the

expenses or you or your spouse earned

ing must be true:

following:

less than $3,000

• Your federal adjusted gross income is

• The care of your qualifying person so you

• Neither you nor your spouse participated

less than $62,000 with one qualifying

(and your spouse, if filing a joint return)

in a pre-tax dependent care assistance

person or less than $74,000 with two or

could work or look for work

program

more qualifying persons

• Household services so you (and your

• Your filing status is not Married Filing

Complete the worksheet below to determine

spouse, if filing a joint return) could work

Separate

your credit.

or look for work.

• The qualifying person lived with you for

more than one-half of the year

If both your actual childcare expenses for

You may qualify for a credit even if you did

the child and the lesser earning spouse’s

not have expenses:

The Minnesota credit is refundable, which

income were $3,000 or more ($6,000 if you

• If you are married and filing a joint

means you may benefit even if you have

have two or more qualifying children), do

no state tax liability. This is different from

return, and your child was born in 2017,

not complete the worksheet. Use your actual

the federal credit which can be used only to

see “What if my child was born in 2017?”

expenses to claim this credit.

offset tax.

•

If you are a licensed day care operator,

see “What if I am a licensed day care

Part-year and nonresidents may be eligible

operator?” on the next page.

for this credit based on the percentage of

their earned income taxable to Minnesota.

Is there a penalty for fraudulently

claiming a refund?

Yes. If you file a return that fraudulently

claims a credit, you will be assessed a pen-

Worksheet for Child Born in 2017

alty equal to 50 percent of the fraudulently

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

claimed credit.

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

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

Do I need proof of my payments?

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

Yes. Save canceled checks and itemized re-

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

ceipts showing your payments for child and

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

dependent care expenses. We may ask you

to show these records if we have questions.

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

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

Who is a qualifying person?

a. For the child born in 2017, enter the smaller of:

A qualifying person is any person who

1)$3,000 ($6,000 for two or more children); or

meets the requirements for the federal credit

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

for child and dependent care expenses.

b. If you had another child (or children) born before January 1, 2017,

Generally, a qualifying person is someone

enter the smallest of:

who lived with you for more than half of

1)your actual qualified child care expenses paid for them;

the year and is one of the following:

2)amount on step 1; or

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

• Your dependent child who is younger

than 13

c. Enter the smaller of:

• Your disabled spouse or disabled depen-

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

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

dent

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

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

of Schedule M1CD.

Schedule M1cd - Child And Dependent Care Credit - 2017 Page 2

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