Page 4 - BI 2018 Benefits Related to Uniform definition of a child

Child and Dependent Care Credit

Child and Dependent Care Credit Requirements
Does the taxpayer meet all of the following tests?
Paid expenses for the care of a qualifying individual
Has earned income
Pays expenses to be able to work or look for work
Has not made the payments for care to (1) someone who could be claimed as
the taxpayer’s dependent; (2) their child under age 19; (3) their spouse; or (4)
the individual’s other parent
Is not filing married filing separately No
General Tests Yes
Has the care provider’s information or has made a reasonable effort to get it

Residency Test
Did the individual have the same principal place of abode as the taxpayer for more No
than half the year?

Yes

Dependent Test 1, 4 No
Is the individual the taxpayer’s spouse or claimed as the taxpayer’s dependent?

Yes

Taxpayer cannot claim the
Joint Return Test 2 Yes Child and Dependent Care
Is the individual filing a joint return?
Credit.
No
Qualifying Child Tests Relationship Test 3
Is the individual the taxpayer’s:
Child, under the Uniform Definition of a Child, or a descendant of
such?
Sibling, step-sibling, or descendant of such?

Yes
4
Age Test
Was the individual younger than the taxpayer and under
age 13 or mentally or physically unable to take care of Yes
themselves when the care was provided?

No
No
Other Qualifying Test Spouse Test 1 Yes Taxpayer can claim the Child

Is the individual a spouse who is mentally or physically unable to take care of
and Dependent Care Credit.
themselves?

No
Taxpayer cannot claim the Child and
Dependent Care Credit.

Footnotes:
1. Answer “Yes” if the taxpayer could have claimed their qualifying child or a disabled individual as a dependent except for the Special Rule for Divorced or Separated
Parents , or could have claimed a disabled individual except for the Dependent Test, Gross Income Test, or the Joint Return Test. A spouse is never claimed as the
taxpayer’s dependent.
2. Answer “No” if a joint return is filed merely as a claim for refund and no tax liability would exist for either spouse on separate returns.
3. A “child” under the uniform definition of a child is the taxpayer’s son, daughter, stepchild, legally adopted child or one lawfully placed with the taxpayer for legal
adoption, or eligible foster child. An eligible foster child is one who is placed with the taxpayer by an authorized placement agency or by a judgment, decree, or
other order of any court of competent jurisdiction.
4. If the custodial parent waives dependency under the Special Rule for Divorced or Separated Parents, it does not affect the custodial parent’s eligibility for
this credit. The child is not a qualifying individual for the noncustodial parent.

C-4 | Appendix C Basic Tax Preparation