Purpose of Form

If you paid someone to care for your child or other qualifying person so you (and your spouse if filing a joint return) could work or look for work in 2007, you may be able to take the credit for child and dependent care expenses. You (and your spouse if filing a joint return) must have earned income to take the credit. But see Spouse Who Was a Student or Disabled on page 3. If you can take the credit, use Form 2441 to figure the amount of your credit.

If you (or your spouse if filing a joint return) received any dependent care benefits for 2007, you must use Form 2441 to figure the amount, if any, of the benefits you may exclude from your income on Form 1040, line 7, or Form 1040NR, line 8. You must complete Part III of Form 2441 before you can figure the credit, if any, in Part II.

Additional information.   

See Pub. 503, Child and Dependent Care Expenses, for more details.

What's New

New definition of earned income.   

When you figure your credit for child and dependent care expenses, your earned income no longer includes employee compensation that is nontaxable. However, you can elect to include any nontaxable combat pay in earned income to figure the credit. See the instructions for Line 4 on page 3.

Part-time work and temporary absences from work.   

You may be able to figure your credit using expenses for care while you were temporarily absent from work or working part-time. For more details, see Pub. 503, Child and Dependent Care Expenses.