Q:

What are Form 2441 instructions?

A:

Quick Answer

Form 2441 instructions help a tax payer calculate how much to claim for the Child and Dependent Care Expenses credit. This form is used when a tax payer made payments to a provider for the care of a child or another dependent person.

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Full Answer

As of 2014, the tax payer can get back as much as 35 percent of the dependent care expenses paid in the form on a tax credit, but payments are capped so that the tax payer cannot claim more than the allowed maximum. If the allowed maximum is $3,000 for one dependent or $6,000 for two or more dependents, the tax payer can recoup a maximum $1,050 for one dependent or $2,100 for two dependents.

The dependent in question must qualify as a dependent of the tax payer for tax purposes and must be a child under the age of 13 or a qualified disabled person.The tax payer must have earned income to claim the credit, and the care must been provided so that the tax payer could work or look for work. Any dependent care benefits that the tax payer received from an employer might need to be included in the tax payer's adjusted gross income to determine eligibility for the credit.

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