Publication 503 - Child And Dependent Care Expenses

4) You must pay child and dependent care expenses so

Person qualifying for part of year. You determine a

you (and your spouse if you are married) can work or

person’s qualifying status each day. For example, if the

look for work. (See Work-Related Expense Test,

person for whom you pay child and dependent care ex-

later.)

penses no longer qualifies on September 16, count only

those expenses through September 15. Also see Dollar

5) You must make payments for child and dependent

Limit under How To Figure the Credit, later.

care to someone you (or your spouse) cannot claim

as a dependent. If you make payments to your child,

Taxpayer identification number. You must include on

he or she cannot be your dependent and must be

your return the name and taxpayer identification number

age 19 or older by the end of the year. (See Pay-

(generally the social security number) of the qualifying

ments to Relatives under Work-Related Expense

person(s). If the correct information is not shown, the credit

Test, later.)

may be reduced or disallowed.

6) Your filing status must be single, head of household,

Individual taxpayer identification number (ITIN) for

qualifying widow(er) with dependent child, or married

aliens. If your qualifying person is a nonresident or resi-

filing jointly. You must file a joint return if you are

dent alien who does not have and cannot get a social

married, unless an exception applies to you. See

security number (SSN), use that person’s ITIN. The ITIN is

Joint Return Test, later.

entered wherever an SSN is requested on a tax return. If

7) You must identify the care provider on your tax re-

the alien does not have an ITIN, he or she must apply for

turn. (See Provider Identification Test, later.)

one on Form W –7, Application for IRS Individual Taxpayer

Identification Number.

8) If you exclude dependent care benefits provided by

An ITIN is for tax use only. It does not entitle the holder

your employer, the amount you exclude must be less

to social security benefits or change the holder’s employ-

than the dollar limit for qualifying expenses (gener-

ment or immigration status under U.S. law.

ally, $2,400 if one qualifying person was cared for, or

$4,800 if two or more qualifying persons were cared

Adoption taxpayer identification number (ATIN). If

for). (See Reduced Dollar Limit under How To Figure

your qualifying person is a child who was placed in your

the Credit, later.)

home for adoption and for whom you do not have an SSN,

you must get an ATIN for the child. File Form W –7A,

These tests are presented in Figure A and are also ex-

Application for Taxpayer Identification Number for Pending

plained in detail in this publication.

U.S. Adoptions.

Qualifying Person Test

Child of Divorced or

Your child and dependent care expenses must be for the

Separated Parents

care of one or more qualifying persons.

A qualifying person is:

To be a qualifying person, your child usually must be your

dependent for whom you can claim an exemption. But an

1) Your dependent who was under age 13 when the

exception may apply if you are divorced or separated.

care was provided and for whom you can claim an

Under the exception, if you are the custodial parent, you

exemption,

can treat your child as a qualifying person even if you

cannot claim the child’s exemption. If you are the noncus-

2) Your spouse who was physically or mentally not able

todial parent, you cannot treat your child as a qualifying

to care for himself or herself, or

person even if you can claim the child’s exemption.

3) Your dependent who was physically or mentally not

This exception applies if all of the following are true.

able to care for himself or herself and for whom you

can claim an exemption (or could claim an exemp-

1) One or both parents had custody of the child for

tion except the person had $3,000 or more of gross

more than half of the year.

income).

2) One or both parents provided more than half of the

If you are divorced or separated, see Child of Divorced

child’s support for the year.

or Separated Parents, later, to determine which parent

may treat the child as a qualifying person.

3) Either:

For information on claiming an exemption, see Publica-

a) The custodial parent signed Form 8332, Release

tion 501.

of Claim to Exemption for Child of Divorced or

Separated Parents, or a similar statement, agree-

Physically or mentally not able to care for oneself.

ing not to claim the child’s exemption for the year,

Persons who cannot dress, clean, or feed themselves

because of physical or mental problems are considered

not able to care for themselves. Also, persons who must

b) The noncustodial parent provided at least $600

have constant attention to prevent them from injuring

for the child’s support and can claim the child’s

themselves or others are considered not able to care for

exemption under a pre-1985 decree of divorce or

themselves.

separate maintenance, or written agreement.

Page 4

Publication 503 - Child And Dependent Care Expenses - 2002 Page 4

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