Contents
Important Change for 1999 ...............................
1
Important Reminders .........................................
1
Introduction ........................................................
2
Tests To Claim the Credit .................................
2
Qualifying Person Test ....................................
2
Keeping Up a Home Test ................................
4
Earned Income Test ........................................
6
Work-Related Expense Test ............................
7
Joint Return Test .............................................
8
Provider Identification Test ..............................
9
How To Figure the Credit ..................................
9
Figuring Total Work-Related Expenses ...........
9
Earned Income Limit ........................................
10
Dollar Limit .......................................................
11
Amount of Credit ..............................................
12
How To Claim the Credit ...................................
12
Employment Taxes for Household Employers
13
Examples .............................................................
13
How To Get More Information ..........................
17
Index ....................................................................
19
Important Change for 1999
Photographs of missing children. The Internal Rev-
enue Service is a proud partner with the National Cen-
ter for Missing and Exploited Children. Photographs of
missing children selected by the Center may appear in
this publication on pages that would otherwise be blank.
You can help bring these children home by looking at
the photographs and calling 1800THELOST
(18008435678) if you recognize a child.
Important Reminders
Taxpayer identification number needed for each
qualifying person. You must include on line 2 of Form
2441, Child and Dependent Care Expenses, or Sched-
ule 2 (Form 1040A), Child and Dependent Care Ex-
penses for Form 1040A Filers, the name and taxpayer
identification number (generally the social security
number) of each qualifying person. See Taxpayer
identification number under Qualifying Person Test,
later.
You may have to pay employment taxes. If you pay
someone to come to your home and care for your de-
pendent or spouse, you may be a household employer
who has to pay employment taxes. Usually, you are not
a household employer if the person who cares for your
dependent or spouse does so at his or her home or
Department of the Treasury
Internal Revenue Service
Publication 503
Cat. No. 15004M
Child and
Dependent
Care Expenses
For use in preparing
1999 Returns