Instructions For Form 2441 - 2016 Page 4

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If You or Your Spouse Was a Student or Disabled
b. Excluded as foreign earned income (including any
housing exclusion) on Form 2555, line 43, or Form
Your spouse's earned income. Your spouse was a
2555-EZ, line 18,
full-time student if he or she was enrolled as a full-time
c. Any Medicaid waiver payment excluded from
student at a school for some part of each of 5 calendar
income under Notice 2014-7. (See the instructions for
months during 2016. The months need not be
Form 1040, line 21, or Form 1040NR, line 21, for more
consecutive. A school doesn't include an on-the-job
information about these payments.)
training course, correspondence school, or a school
offering courses only through the Internet. Your spouse
d. Also reported on Schedule SE (Form 1040)
was disabled if he or she wasn't physically or mentally
because you were a member of the clergy or you received
capable of self-care. Figure your spouse's earned income
$108.28 or more of church employee income,
on a monthly basis.
e. Received for work performed while an inmate in a
For each month or part of a month your spouse was a
penal institution, or
student or was disabled, he or she is considered to have
f. Received as a pension or annuity from a
worked and earned income. His or her earned income for
nonqualified deferred compensation plan or a
each month is considered to be at least $250 ($500 if
nongovernmental section 457(b) plan. This amount may
more than one qualifying person was cared for in 2016).
be reported in box 11 of Form W-2. If you received such
Enter that amount on line 5. If your spouse also worked
an amount but box 11 is blank, contact your employer for
during that month, use the higher of $250 (or $500) or his
the amount received as a pension or annuity.
or her actual earned income for that month.
2. The amount shown on Schedule SE, line 3, minus
For any month that your spouse wasn't a student or
any deduction you claim on Form 1040 or Form 1040NR,
disabled, use your spouse's actual earned income if he or
line 27.
she worked during the month.
If you use either optional method to figure
Your earned income. These rules for a spouse who was
self-employment tax, subtract any deduction you claim on
a student or disabled also apply to you if you were a
Form 1040 or Form 1040NR, line 27, from the total of the
student or disabled. For each month or part of a month
amounts shown on Schedule SE, Section B, lines 3 and
you were a student or disabled, your earned income is
4b.
considered to be at least $250 ($500 if more than one
If you received church employee income of $108.28 or
qualifying person was cared for in 2016). Enter that
more, subtract any deduction you claim on Form 1040 or
amount on line 4. If you also worked during that month,
Form 1040NR, line 27, from the total of the amounts
enter the higher of $250 (or $500) or your actual earned
shown on Schedule SE, Section B, lines 3, 4b, and 5a.
income for that month.
3. If you are filing Schedule C (Form 1040) or C-EZ
Both spouses were students or disabled. If, in the
(Form 1040) as a statutory employee, the amount shown
same month, both you and your spouse were either
on line 1 of the schedule.
students or disabled, only one of you can be treated as
4. Nontaxable combat pay, if you elect to include it in
having earned income in that month under these rules.
earned income. However, including this income will only
give you a larger credit if your (or your spouse's) other
Special Situations
earned income is less than the amount entered on line 3.
To make the election, include all of your nontaxable
If you are filing jointly, disregard community property
combat pay in the amount you enter on line 4 (line 5 for
laws.
your spouse if filing jointly).
If your spouse died in 2016, see Pub. 503.
If you are filing jointly and both you and your spouse
Line 9
received nontaxable combat pay, you can each make
Credit for Prior Year's Expenses
your own election. (In other words, if one of you makes the
election, the other one can also make it but doesn't have
If you had qualified expenses for 2015 that you didn't pay
to.) The amount of your nontaxable combat pay should be
until 2016, you may be able to increase the amount of
shown in box 12 of your Form(s) W-2 with code Q.
credit you can take in 2016. To figure the credit, see
Worksheet A in Pub. 503. If you can take a credit for your
You can choose to include your nontaxable
2015 expenses, enter the amount of the additional credit
combat pay in earned income when figuring your
TIP
and “CPYE” (Credit for Prior Year Expenses) on the
credit, even if you choose not to include it in
dotted line next to line 9. Add the credit to the amount on
earned income for the earned income credit (EIC) or the
line 9 and replace the amount on line 9 with that total.
exclusion or deduction for child and dependent care
Also, attach a statement to your tax return showing the
benefits.
name and taxpayer identification number of the person for
whom you paid the prior year's expenses and how you
You must reduce your earned income by any loss
figured the credit.
from self-employment.
!
CAUTION
Child support payments received by you aren't
included in your gross income and aren't considered as
earned income for figuring this credit.
­4­
Instructions for Form 2441 (2016)

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