Instructions For Form 2441 - 2016 (Page 5 of 6) in pdf

Line 10

and your spouse's earned income on line 19. If your filing

status is married filing separately or you or your spouse

Credit Limit Worksheet

was a student or disabled, see the instructions for line 19.

Complete this worksheet to figure the amount to enter on

Earned income for figuring the amount of dependent

line 10.

care benefits you are able to exclude or deduct from your

income includes the following amounts.

1. Enter the amount from Form 1040, line 47; Form 1040A,

1. The amount shown on Form 1040, line 7; Form

line 30; or Form 1040NR, line 45

. . . . . . . . . . . .

1040A, line 7; or Form 1040NR, line 8; minus any amount:

2. Enter the amount from Form 1040, line 48; or Form

1040NR, line 46; Form 1040A filers enter -0-

. . . . .

a. Included for a scholarship or fellowship grant that

3. Subtract line 2 from line 1. Also enter this amount on

wasn't reported to you on a Form W-2,

Form 2441, line 10. But if zero or less, stop; you cannot

b. Excluded as foreign earned income (including any

take the credit

. . . . . . . . . . . . . . . . . . . . . . .

housing exclusion) on Form 2555, line 43, or Form

2555-EZ, line 18,

Line 13

c. Any Medicaid waiver payment excluded from

income under Notice 2014-7. (See the instructions for

If you had an employer-provided dependent care plan,

Form 1040, line 21, or Form 1040NR, line 21, for more

your employer may have permitted you to carry forward

information about these payments.)

any unused amount from 2015 to use during a grace

period in 2016. Enter on line 13 the amount you carried

d. Also reported on Schedule SE (Form 1040)

forward and used in 2016 during the grace period.

because you were a member of the clergy or you received

$108.28 or more of church employee income,

Line 14

e. Received for work performed while an inmate in a

If you had an employer-provided dependent care plan,

penal institution, and

enter on line 14 the total of the following amounts included

f. Received as a pension or annuity from a

on line 12.

nonqualified deferred compensation plan or a

Any amount you forfeited. You forfeited an amount if

nongovernmental section 457(b) plan. This amount may

you didn't receive it because you didn't incur the expense.

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

Don't include amounts you expect to receive at a future

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

date.

the amount received as a pension or annuity.

Any amount you didn't receive but are permitted by your

2. The amount shown on Schedule SE, line 3, minus

employer to carry forward and use in the following year

any deduction you claim on Form 1040 or Form 1040NR,

during a grace period.

line 27.

Example. Under your employer's dependent care

If you use either optional method to figure

plan, you chose to have your employer set aside $5,000

self-employment tax, subtract any deduction you claim on

to cover your 2016 dependent care expenses. The $5,000

Form 1040 or Form 1040NR, line 27, from the total of the

is shown on your Form W-2, in box 10. In 2016, you

amounts shown on Schedule SE, Section B, lines 3 and

incurred and were reimbursed for $4,950 of qualified

4b.

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

amount forfeited, on line 14. You would also enter $50 on

If you received church employee income of $108.28 or

line 14 if, instead of forfeiting the amount, your employer

more, subtract any deduction you claim on Form 1040 or

permitted you to carry the $50 forward to use during the

Form 1040NR, line 27, from the total of the amounts

grace period in 2017.

shown on Schedule SE, Section B, lines 3, 4b, and 5a.

3. If you are filing Schedule C (Form 1040) or C-EZ

Line 15

(Form 1040) as a statutory employee, the amount shown

Add the amounts on lines 12 and 13 and subtract from

on line 1 of the schedule.

that total the amount on line 14. Enter the result on

4. Nontaxable combat pay, if you elect to include it in

line 15.

earned income. However, including this income will only

give you a larger exclusion or deduction if your (or your

Line 16

spouse's) other earned income is less than the amount

Enter the total of all qualified expenses incurred in 2016

entered on line 17. To make the election, include all of

for the care of your qualifying person(s). It doesn't matter

your nontaxable combat pay in the amount you enter on

when the expenses were paid.

line 18 (line 19 for your spouse if filing jointly).

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

If you are filing jointly and both you and your spouse

employer's dependent care plan for 2016. The $2,000 is

received nontaxable combat pay, you can each make

shown on your Form W-2, in box 10. Only $900 of

your own election. (In other words, if one of you makes the

qualified expenses were incurred in 2016 for the care of

election, the other one can also make it but doesn't have

your 5-year-old dependent child. You would enter $2,000

to.) The amount of your nontaxable combat pay should be

on line 12 and $900 on line 16.

shown in box 12 of your Form(s) W-2 with code Q.

Line 18

If filing jointly, figure your and your spouse's earned

income separately. Enter your earned income on line 18

Instructions for Form 2441 (2016)

Instructions For Form 2441 - 2016 Page 5

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