Publication 503 - Child And Dependent Care Expenses - 2002 Page 13
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2212,000
14,000
28%
on only $1,400 of the $1,900 work-related expenses he
14,000
16,000
27%
paid. This is because his dollar limit is reduced as shown
16,000
18,000
26%
next.
18,000
20,000
25%
20,000
22,000
24%
George’s Reduced Dollar Limit
22,000
24,000
23%
24,000
26,000
22%
1) Maximum allowable expenses for one
26,000
28,000
21%
qualifying person . . . . . . . . . . . . . . . . . . . . . . . .
$2,400
28,000
No limit
20%
2) Minus: Dependent care benefits George
−1,000
excludes from income . . . . . . . . . . . . . . . . . . . . .
3) Reduced dollar limit on expenses George
Payments for previous year’s expenses. If you had
can use for the credit . . . . . . . . . . . . . . . . . . . . .
$1,400
work-related expenses in 2001 that you paid in 2002, you
may be able to increase the credit on your 2002 return.
Amount of Credit
Attach a statement to your form showing how you figured
the additional amount from 2001. Then write “CPYE” and
To determine the amount of your credit, multiply your
the amount of the credit on the dotted line next to line 9 on
work-related expenses (after applying the earned income
Form 2441 or in the space to the left of line 9 on Schedule 2
and dollar limits) by a percentage. This percentage de-
(Form 1040A). Also write the name and taxpayer identifica-
pends on your adjusted gross income shown on line 36 of
tion number of the person for whom you paid the prior
Form 1040 or line 22 of Form 1040A. The following table
year’s expenses. Then add this credit to the amount on line
shows the percentage to use based on adjusted gross
9, and replace the amount on line 9 with the total.
income.
Example. In 2001, Sam and Kate had child-care ex-
IF your adjusted gross income is:
THEN the
penses of $2,600 for their 12-year-old child. Of the $2,600,
Over
But not over
percentage is:
they paid $2,000 in 2001 and $600 in 2002. Their adjusted
$
0
$10,000
30%
gross income for 2001 was $30,000. Sam’s earned income
10,000
12,000
29%
of $14,000 was less than Kate’s earned income. A credit
Filled−In Worksheet 1. Worksheet for 2001 Expenses Paid in 2002— Illustration for Sam
and Kate’s Example.
(Note: Use this worksheet to figure the credit you may claim for 2001 expenses paid in 2002.)
1. Enter your 2001 qualified expenses paid in 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
$ 2,000
2. Enter your 2001 qualified expenses paid in 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
600
3. Add the amounts on lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
2,600
4. Enter $2,400 if care was for one qualifying person ($4,800 if for two or more) . . . . . . . . . .
4.
2,400
5. Enter any dependent care benefits received for 2001 and excluded from your income (from
line 18 of 2001 Form 2441 or Schedule 2 (Form 1040A)) . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
0
6. Subtract amount on line 5 from amount on line 4 and enter the result . . . . . . . . . . . . . . . .
6.
2,400
7. Compare your earned income for 2001 and your spouse’s earned income for 2001 and
enter the smaller amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
14,000
8. Compare the amounts on lines 3, 6, and 7 and enter the smallest amount . . . . . . . . . . . . .
8.
2,400
9. Enter the amount on which you figured the credit for 2001 (from line 6 of 2001 Form 2441
or Schedule 2 (Form 1040A)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
2,000
10. Subtract amount on line 9 from amount on line 8 and enter the result. If zero or less, stop
here. You cannot increase your credit by any previous year’s expenses . . . . . . . . . . . . . . 10.
400
11. Enter your 2001 adjusted gross income (from line 33 of your 2001 Form 1040 or line 19 of
your 2001 Form 1040A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
30,000
12. Find your 2001 adjusted gross income in the table of percentages (shown earlier) and
enter the corresponding decimal amount here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
.20
13. Multiply line 10 by line 12. Add this amount to your 2002 credit and enter the total on line 9
of your 2002 Form 2441 or Schedule 2 (Form 1040A). Write “CPYE,” the amount of this
credit for a prior year’s expenses, and the name and taxpayer identification number of the
person for whom you paid the prior year’s expenses on the dotted line next to line 9 of
Form 2441 or in the space to the left of line 9 on Schedule 2 (Form 1040A) . . . . . . . . . . . . 13.
$
80
Page 13
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