U.S. Individual Income Tax Return Forms

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2021

Instructions for Form 2441

Department of the Treasury
Internal Revenue Service

Child and Dependent Care Expenses

DRAFT AS OF
October 26, 2021

Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 2441 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form2441.

What’s New

Changes to the credit for child and dependent care
expenses for 2021. For 2021, the American Rescue
Plan Act of 2021 (the ARP) increases the amount of the
credit for child and dependent care expenses. It also
makes the credit refundable for taxpayers that meet
certain residency requirements, increases the percentage
of employment-related expenses for qualifying care
considered in calculating the credit, and modifies the
phase-out of the credit for higher earners. For 2021, you
may claim the credit on qualifying employment-related
expenses of up to $8,000 (previously $3,000) if you had
one qualifying person, or $16,000 (previously $6,000) if
you had two or more qualifying persons. The maximum
credit in 2021 increases to 50% of your
employment-related expenses, which equals a maximum
credit of $4,000 if you had one qualifying person (50% of
$8,000), or $8,000 (50% of $16,000) if you had two or
more qualifying persons. The more a taxpayer earns, the
lower the percentage of employment-related expenses
that are considered in determining the credit. Under the
ARP, the adjusted gross income level at which the credit
percentage starts to phase out is raised to $125,000 for
2021. Above $125,000, the 50% credit percentage goes
down as income rises. For 2021, the credit figured on
line 9a is unavailable for any taxpayer with adjusted gross
income over $438,000; however, you may still be eligible
to claim a credit on line 9b. See the instructions for line 8
for the 2021 phaseout schedule. To see if you meet the
residency requirements to qualify for the refundable
credit, see the instructions for line B. The refundable
credit is reported on line 10. The nonrefundable credit is
reported on line 11. For more information about the credit,
see Pub. 503, Child and Dependent Care Expenses,
available at IRS.gov/Pub503, and frequently asked
questions at IRS.gov/CDCCFAQS.
Changes to dependent care benefits for 2021. The
ARP increased the maximum amount that can be
excluded from an employee’s income through a
dependent care assistance program. For 2021, the
amount is increased to $10,500 (previously $5,000). For
married employees filing separate returns, the amount is
increased to $5,250 (previously $2,500). The amount of
dependent care benefits you received is reported on
line 12.
Oct 26, 2021

Temporary special rules for dependent care flexible
spending arrangements (FSAs). Section 214 of the
Taxpayer Certainty and Disaster Tax Relief Act of 2020
provides temporary COVID-19 relief for dependent care
FSAs. This legislation allows employers to amend their
dependent care plan to allow unused amounts to be used
in a subsequent year. It also allows employers to amend
their dependent care plan to allow participants to use
amounts in a subsequent year if a dependent turned 13
before the funds were used. Unused amounts from 2020
are added to the $10,500 ($5,250 if married filing
separately) maximum amount of dependent care benefits
that are allowed for 2021. See the instructions for line 13.
Credit for prior year’s expenses and worksheet for
2020 expenses paid in 2021. The credit for prior year’s
expenses is now reported separately on line 9b.
Previously, it was added to the current year credit and
reported together on one line. We moved Worksheet A,
Worksheet for 2020 Expenses Paid in 2021, from Pub.
503 to the end of these instructions. If you paid 2020
expenses in 2021, you must complete Worksheet A to
figure the amount to enter on line 9b. See the instructions
for line 9b.

Reminders
Married persons filing separately checkbox on line A.
Generally, married persons must file a joint return to claim
the credit. If you claim the credit and your filing status is
married filing separately, you are required to show you
meet the special requirements listed later under Married
Persons Filing Separately by checking the checkbox
located on line A above Part I on Form 2441. See Line A,
later, for more information.

Purpose of Form

If you paid someone to care for your child or other
qualifying person so you (and your spouse if filing jointly)
could work or look for work in 2021, you may be able to
take the credit for child and dependent care expenses.
In addition, if you (or your spouse if filing jointly)
received any dependent care benefits for 2021, you must
use Form 2441 to figure the amount, if any, of the benefits
you can exclude from your income. You must complete
Part III of Form 2441 before you can figure the credit, if
any, in Part II.
You (and your spouse if filing jointly) must have earned
income to take the credit or exclude dependent care
benefits from your income. But see If You or Your Spouse
Was a Student or Disabled, later, if either of these
circumstances applies.
Additional information. See Pub. 503 for more details.
Also see frequently asked questions at IRS.gov/
CDCCFAQS.

Cat. No. 10842K

• The child was in the custody of one or both parents for
more than half the year; and
• You were the child's custodial parent.
Generally, the custodial parent is the parent with whom
the child lived for the greater number of nights in 2021. If
the child was with each parent for an equal number of
nights, the custodial parent is the parent with the higher
adjusted gross income. For details and an exception for a
parent who works at night, see Pub. 501.
Generally, the noncustodial parent can't treat the child
as a qualifying person even if that parent is entitled to
claim the child as a dependent under the special rules for
a child of divorced or separated parents or parents who
live apart.

Definitions
Dependent Care Benefits

Dependent care benefits may include:
• Amounts your employer paid directly to either you or
your care provider for the care of your qualifying person(s)
while you worked,
• The fair market value of care in a daycare facility
provided or sponsored by your employer, and
• Pre-tax contributions you made under a dependent
care FSA.

DRAFT AS OF
October 26, 2021

Your salary may have been reduced to pay for these
benefits. If you received dependent care benefits as an
employee, they should be shown in box 10 of your Form
W-2, Wage and Tax Statement. Benefits you received as
a partner should be shown in box 13 of your Schedule K-1
(Form 1065) with code O.

Qualified Expenses

These include amounts paid for household services and
care of the qualifying person while you worked or looked
for work. Your work can be for others or in your own
business and it can be either in or out of your home. Child
support payments aren't qualified expenses. Also,
expenses reimbursed by a state social service agency
aren't qualified expenses.

Qualifying Person(s)

A qualifying person is any of the following.
1. A qualifying child under age 13 whom you can claim
as a dependent. If the child turned 13 during the year, the
child is a qualifying person for the part of the year he or
she was under age 13.
2. Your disabled spouse who wasn't physically or
mentally able to care for himself or herself.
3. Any disabled person who wasn't physically or
mentally able to care for himself or herself whom you can
claim as a dependent or could claim as a dependent
except:
a. The disabled person had gross income of $4,300 or
more,
b. The disabled person filed a joint return, or
c. You (or your spouse if filing jointly) could be claimed
as a dependent on another taxpayer's 2021 return.

Generally, if you worked or actively looked for work
during only part of the period in which you incurred the
expenses, you must figure your expenses for each day.
However, there are special rules for temporary absences
or part-time work. Also, if part of an expense is work
related (for either household services or the care of a
qualifying person) and part is for other purposes, you have
to divide the expense. However, you don't have to divide
the expense if only a small part is for other purposes. See
Pub. 503 for more details.

Household Services
These are services needed to care for the qualifying
person as well as to run the home while you worked or
looked for work. They include, for example, the services of
a cook, maid, babysitter, housekeeper, or cleaning person
if the services were partly for the care of the qualifying
person. However, they don't include the services of a
chauffeur, bartender, or gardener.

If you are divorced or separated, see Special rule for
children of divorced or separated parents or parents who
live apart below. See the instructions for line 13, later, for
a special rule that allows 2020 dependent care benefits
reported on line 13 to be used in 2021 for a qualifying
child that is under age 14.

You can also include your share of the employment
taxes paid on wages for qualifying child and dependent
care services.

To find out who is a qualifying child and who is a
dependent, see Pub. 501, Dependents, Standard
Deduction, and Filing Information.

!

CAUTION

To be a qualifying person, generally the person
must have lived with you for more than half of
2021.

Care of the Qualifying Person
Expenses are for the care of a qualifying person while you
worked or looked for work only if their main purpose is for
the person's well-being and protection. It doesn't include
the cost of food, lodging, education, clothing, or
entertainment.

Special rule for children of divorced or separated parents or parents who live apart. Even if you can't claim
your child as a dependent, he or she is treated as your
qualifying person if:
• The child was under age 13 or wasn't physically or
mentally able to care for himself or herself;
• The child received over half of his or her support during
the calendar year from one or both parents who are
divorced or legally separated under a decree of divorce or
separate maintenance, are separated under a written
separation agreement, or lived apart at all times during the
last 6 months of the calendar year;

You can include the cost of care provided outside your
home for your dependent under age 13, or any other
qualifying person who regularly spends at least 8 hours a
day in your home. If the care was provided by a
dependent care center, the center must meet all
applicable state and local regulations. A dependent care
center is a place that provides care for more than six
persons (other than persons who live there) and receives
-2-

Instructions for Form 2441 (2021)

can generally take the credit or the exclusion. If you don't
meet all of the requirements to be treated as unmarried,
you can’t generally take the credit. However, you can
generally take the exclusion if you meet items 2 through 5.

a fee, payment, or grant for providing services for any of
those persons, even if the center isn't run for profit.
You can include amounts paid for items other than the
care of your child (such as food and schooling) only if the
items are incidental to the care of the child and can't be
separated from the total cost. But don't include the cost of
schooling for a child in kindergarten or above. You can
include the cost of a day camp, even if it specializes in a
particular activity, such as computers or soccer. But don't
include any expenses for sending your child to an
overnight camp, summer school, or a tutoring program.

Example. Amy separated from her spouse in March.
She isn't separated under a decree of divorce or separate
maintenance agreement and uses the married filing
separately filing status. Amy maintains a home for herself
and Sam, her disabled father. Sam is permanently and
totally disabled and unable to care for himself.
Because Sam earns $5,600 in interest income, Amy
can't claim him as a dependent (his gross income is
greater than $4,300). And, because Amy isn't able to
claim Sam as a dependent and she is still married as of
the end of the year, she can't use the head of household
filing status. Amy's filing status is married filing separately
and Sam is a qualifying person for the child and
dependent care credit.
Because of the following facts, Amy is able to claim the
credit for child and dependent care expenses even though
Amy uses the married filing separately filing status.
• Amy didn't live with her spouse for the last 6 months of
the year.
• She has maintained a home for herself and Sam (a
qualifying person) since she separated from her spouse in
March.
• She maintains her own household and provides more
than half of the cost of maintaining that home for herself
and Sam.
• Amy pays an adult daycare center to care for Sam to
allow her to work.

DRAFT AS OF
October 26, 2021

Medical Expenses
Some disabled spouse and dependent care expenses
can qualify as medical expenses if you itemize deductions
on Schedule A (Form 1040). However, you can't claim the
same expense as both a dependent care expense and a
medical expense. See Pub. 502, Medical and Dental
Expenses, and Pub. 503 for details.

Who Can Take the Credit or Exclude
Dependent Care Benefits?

You can take the credit or the exclusion if all five of the
following apply.
1. Your filing status may be single, head of household,
qualifying widow(er) with dependent child, or married filing
jointly. If your filing status is married filing separately, see
Married Persons Filing Separately, later.
2. The care was provided so you (and your spouse if
filing jointly) could work or look for work. However, if you
didn't find a job and have no earned income for the year,
you can't take the credit or the exclusion. But if you or your
spouse was a full-time student or disabled, see the
instructions for lines 4 and 5, later.
3. The care must be for one or more qualifying
persons. See Qualifying Person(s), earlier.
4. The person who provided the care wasn't your
spouse, the parent of your qualifying child, or a person
whom you can claim as a dependent. If your child
(including stepchild or foster child) provided the care, he
or she must have been age 19 or older by the end of
2021, and he or she can't be your dependent.
5. You report the required information about the care
provider on line 1 and, if taking the credit, the information
about the qualifying person on line 2.

Line Instructions
Line A

If your filing status is married filing separately and you
meet the requirements to claim the credit for child and
dependent care expenses, you must check the box on line
A. By checking the box, you are confirming that you meet
the requirements listed earlier under Married Persons
Filing Separately.

Line B

For 2021, your credit for child and dependent care
expenses is refundable if you, or your spouse if married
filing jointly, had a principal place of abode in the United
States for more than half of 2021. This means you, or your
spouse if married filing jointly, must have your main home
in one of the 50 states or the District of Columbia for more
than half of the tax year. Your main home can be any
location where you regularly live. Your main home may be
your house, apartment, mobile home, shelter, temporary
lodging, or other location and doesn’t need to be the same
physical location throughout the tax year. If you're
temporarily away from your main home because of illness,
education, business, or vacation, you're generally treated
as living in your main home during that time. If you meet
these requirements, you must check the box on line B. If
you don't check the box on line B, your credit for 2021 is
nonrefundable and limited by the amount of your tax.

Married Persons Filing Separately

Generally, married persons must file a joint return to claim
the credit. If your filing status is married filing separately
and all of the following apply, you are considered
unmarried for purposes of claiming the credit on Form
2441.
• You lived apart from your spouse during the last 6
months of 2021.
• Your home was the qualifying person's main home for
more than half of 2021.
• You paid more than half of the cost of keeping up that
home for 2021.

Military personnel stationed outside the United
States. U.S. military personnel who are stationed

If you meet all of the requirements to be treated as
unmarried and meet items 2 through 5 listed earlier, you
Instructions for Form 2441 (2021)

-3-

you the information, complete the entries you can on
line 1. For example, enter the provider's name and
address. Enter “See Attached Statement” in the columns
for which you don't have the information. Then, attach a
statement to your return explaining that the provider didn't
give you the information you requested.

outside the United States on extended active duty are
considered to have their main home in one of the 50
states or the District of Columbia for purposes of
qualifying for the refundable portion of the credit. For this
purpose, “extended active duty” means any period of
active duty pursuant to a call or order to active duty for a
period in excess of 90 days or for an indefinite period.

Don't list an ineligible related individual as a care
provider on line 1. No credit is allowed for any
CAUTION amount paid to your spouse, the parent of your
qualifying child, or a person whom you can claim as a
dependent. If your child (including stepchild or foster
child) provided the care, he or she must have been age 19
or older by the end of the year, and he or she can't be your
dependent.

Additional information. For more information, including
rules for people living in American Samoa, the
Commonwealth of the Northern Mariana Islands, Guam,
Puerto Rico, or the U.S. Virgin Islands, see frequently
asked questions at IRS.gov/CDCCFAQS. Form 1040-NR
filers should also see the Instructions for Form 1040-NR
for additional information about claiming the refundable
credit.

DRAFT AS OF
October 26, 2021
!

Form 2441 and these instructions use the terms

Columns (a) and (b)
Enter the care provider's name and address. If you were
covered by your employer's dependent care plan and your
employer furnished the care (either at your workplace or
by hiring a care provider), enter your employer's name in
column (a). Next, enter “See W-2” in column (b). Then,
leave columns (c) and (d) blank. But if your employer paid
a third party (not hired by your employer) on your behalf to
provide the care, you must give information on the third
party in columns (a) through (d).

TIP "refundable" and "nonrefundable" when

discussing the credit for child and dependent care
expenses. The term "refundable" means the credit isn't
limited to the amount of your taxes, so even if your credit
exceeds the amount of federal income tax that you owe,
you can still claim the full amount of your credit and the
amount of the credit in excess of your tax liability can be
refunded to you. The term "nonrefundable" means the
credit is limited by law to the amount of your taxes. If you
checked the box on line B, your credit is refundable and it
is reported on Form 2441, line 10, and on Schedule 3
(Form 1040), line 13g, and you don't enter any amount on
Form 2441, line 11. If you didn’t check the box on line B,
your credit is nonrefundable and you may not enter on
Schedule 3 (Form 1040), line 13g, the amount from
line 10. Instead, you enter the portion of line 10 that you
can claim as a nonrefundable credit on line 11. The
nonrefundable credit on line 11 is reported on Schedule 3
(Form 1040), line 2.

Column (c)
If the care provider is an individual, enter his or her SSN or
individual taxpayer identification number (ITIN).
Otherwise, enter the provider's employer identification
number (EIN). If the provider is a tax-exempt organization,
enter “Tax-Exempt” in column (c).
U.S. citizens and resident aliens living abroad. If you
are living abroad, your care provider may not have, and
may not be required to get, a U.S. taxpayer identification
number (for example, an SSN or EIN). If so, enter
“LAFCP” (Living Abroad Foreign Care Provider) in the
space for the care provider's taxpayer identification
number. If you lived abroad in 2021, your credit may not
be refundable; see the instructions for line B, earlier.

Line 1

Complete columns (a) through (d) for each person or
organization that provided the care. You can use Form
W-10, Dependent Care Provider's Identification and
Certification, or any other source listed in its instructions to
get the information from the care provider. If you don't give
correct or complete information, your credit (and
exclusion, if applicable) may be disallowed unless you
can show you used due diligence in trying to get the
required information.

Column (d)
Enter the total amount you actually paid in 2021 to the
care provider. Also, include amounts your employer paid
to a third party on your behalf. It doesn't matter when the
expenses were incurred. Don't reduce this amount by any
reimbursement you received.

If you have more than three care providers, check the
box above line 1 and attach a statement to your return
with the required information. Be sure to put your name
and social security number (SSN) on the statement.

Line 2

Complete columns (a) through (c) for each qualifying
person. If you have more than three qualifying persons,
check the box on line 2 and attach a statement to your
return with the required information. Be sure to put your
name and SSN on the statement.

If you had neither a qualifying person nor any care
providers for 2021, and you are filing Form 2441 only to
report taxable income in Part III, enter “none” on line 1,
column (a).

Due Diligence
You can show a serious and earnest effort (due diligence)
to get the information by keeping in your records a Form
W-10 completed by the care provider. Or you may keep
one of the other sources of information listed in the
instructions for Form W-10. If the provider doesn't give

!

CAUTION

-4-

Don't list a person on line 2 unless they are listed
as an eligible person under Qualifying Person(s),
earlier.

Instructions for Form 2441 (2021)

a. Included for a scholarship or fellowship grant that
wasn't reported to you on a Form W-2,

Column (b)
You must enter the qualifying person's SSN. Be sure the
name and SSN entered agree with the person's social
security card. Otherwise, at the time we process your
return, we may reduce or disallow your credit. If the child
was born and died in 2021 and didn't have an SSN, enter
“Died” in column (b) and attach a copy of the child's birth
certificate, death certificate, or hospital medical records.

b. Excluded as foreign earned income (including any
housing exclusion) on Form 2555, line 43,
c. Also reported on Schedule SE (Form 1040)
because you were a member of the clergy or you received
$108.28 or more of church employee income,
d. Received for work performed while an inmate in a
penal institution, or
e. Received as a pension or annuity from a
nonqualified deferred compensation plan or a
nongovernmental section 457(b) plan. This amount may
be reported in box 11 of Form W-2. If you received such
an amount but box 11 is blank, contact your employer for
the amount received as a pension or annuity.
2. The amount shown on Schedule SE (Form 1040),
line 3, minus any deduction you claim on Schedule 1
(Form 1040), line 15.
If you use either optional method to figure
self-employment tax, subtract any deduction you claim on
Schedule 1 (Form 1040), line 15, from the total of the
amounts shown on Schedule SE (Form 1040), lines 3 and
4b.
If you received church employee income of $108.28 or
more, subtract any deduction you claim on Schedule 1
(Form 1040), line 15, from the total of the amounts shown
on Schedule SE (Form 1040), lines 3, 4b, and 5a.
3. If you are filing Schedule C (Form 1040) as a
statutory employee, the amount shown on line 1 of the
schedule.
4. Nontaxable combat pay, if you elect to include it in
earned income. However, including this income will only
give you a larger credit if your (or your spouse's) other
earned income is less than the amount entered on line 3.
To make the election, include all of your nontaxable
combat pay in the amount you enter on line 4 (line 5 for
your spouse if filing jointly).
If you are filing jointly and both you and your spouse
received nontaxable combat pay, you can each make
your own election. (In other words, if one of you makes the
election, the other one can also make it but doesn't have
to.) The amount of your nontaxable combat pay should be
shown in box 12 of your Form(s) W-2 with code Q.

DRAFT AS OF
October 26, 2021

To find out how to get an SSN, see Social Security
Number (SSN) in the Instructions for Form 1040. If the
name or SSN on the person's social security card isn't
correct, call the Social Security Administration at
800-772-1213.

If the qualifying person has an individual taxpayer
identification number (ITIN) or adoption taxpayer
identification number (ATIN), see Taxpayer identification
number in Pub. 503.

Column (c)
Enter the qualified expenses you incurred and paid in
2021 for the person listed in column (a). If you completed
Part III, don't include in column (c) any benefits shown on
line 28. Don't include in column (c) the following qualified
expenses.
• Expenses you incurred in 2020 but didn't pay until
2021. Instead, see the instructions for line 9b.
• Expenses you incurred in 2021 but didn't pay until
2022. You may be able to use these expenses to increase
your 2022 credit.
• Expenses you prepaid in 2021 for care to be provided
in 2022. These expenses can only be used to figure your
2022 credit.
To qualify for the credit, you must have one or more
qualifying persons. You should show the expenses for
each qualifying person in column (c) of line 2. The
maximum amount of work-related expenses you can take
into account for purposes of the credit is $16,000 if you
have two or more qualifying persons even if you only
incurred expenses for just one of them. For example, if
you have two qualifying children, one age 3 and one age
11, and you incur $16,000 of qualifying work-related
expenses for the 3-year-old, and no qualifying
work-related expenses for the 11-year-old, the maximum
total amount of the credit is $8,000 (50% of $16,000). In
this situation, you should list $16,000 for the 3-year-old
child and -0- for the 11-year-old child. The $16,000 limit
would be used to compute your credit unless you have
already excluded or deducted, in Part III, certain
dependent care benefits paid to you (or on your behalf) by
your employer.

You can choose to include your nontaxable

TIP combat pay in earned income when figuring your

credit, even if you choose not to include it in
earned income for the earned income credit (EIC) or the
exclusion or deduction for child and dependent care
benefits.

!

Lines 4 and 5

If filing jointly, figure your and your spouse's earned
income separately. Enter your earned income on line 4
and your spouse's earned income on line 5.

CAUTION

Child support payments received by you aren't
included in your gross income and aren't considered as
earned income for figuring this credit.

Earned income for figuring the credit generally includes
the following amounts.
1. The amount shown on Form 1040 or 1040-SR,
line 1; or Form 1040-NR, line 1a, minus any amount:
Instructions for Form 2441 (2021)

You must reduce your earned income by any loss
from self-employment.

See Pub. 503 for additional details on what is
considered earned income.
-5-

student or disabled. For each month or part of a month
you were a student or disabled, your earned income is
considered to be at least $250 ($500 if you had two or
more qualifying persons at any time during 2021). Enter
that amount on line 4. If you also worked during that
month, enter the higher of $250 (or $500) or your actual
earned income for that month.

If You or Your Spouse Was a Student or Disabled
Your spouse's earned income. Your spouse was a
full-time student if he or she was enrolled as a full-time
student at a school for some part of each of 5 calendar
months during 2021. The months need not be
consecutive. A school doesn't include an on-the-job
training course, a correspondence school, or a school
offering courses only through the Internet. Your spouse
was disabled if he or she wasn't physically or mentally
capable of caring for himself or herself. Figure your
spouse's earned income on a monthly basis.
For each month or part of a month your spouse was a
student or was disabled, he or she is considered to have
worked and earned income. His or her earned income for
each month is considered to be at least $250 ($500 if you
had two or more qualifying persons at any time during
2021). Enter that amount on line 5. If your spouse also
worked during that month, use the higher of $250 (or
$500) or his or her actual earned income for that month.
For any month that your spouse wasn't a student or
disabled, use your spouse's actual earned income if he or
she worked during the month.

Both spouses were students or disabled. If, in the
same month, both you and your spouse were either
students or disabled, only one of you can be treated as
having earned income in that month under these rules.

DRAFT AS OF
October 26, 2021

Special Situations
• If you are filing jointly, disregard community property
laws in determining the earned income of an individual.
• If your spouse died in 2021, see Pub. 503.

Line 8

Enter on line 8 the decimal amount shown below that
applies to the amount on line 7. If line 7 is over $438,000,
don't complete line 8. Enter zero on line 9a. You may be
able to claim a credit on line 9b.

Your earned income. These rules for a spouse who was
a student or disabled also apply to you if you were a
2021 Phaseout Schedule
If line 7 is:
Over:
$0
125,000
127,000
129,000
131,000

If line 7 is:
Over:
$175,000
177,000
179,000
181,000
183,000

–
–
–
–
–

–
–
–
–
–

133,000
135,000
137,000
139,000
141,000

–
–
–
–
–

135,000
137,000
139,000
141,000
143,000

.45
.44
.43
.42
.41

400,000
402,000
404,000
406,000
408,000

–
–
–
–
–

402,000
404,000
406,000
408,000
410,000

.19
.18
.17
.16
.15

143,000
145,000
147,000
149,000
151,000

–
–
–
–
–

145,000
147,000
149,000
151,000
153,000

.40
.39
.38
.37
.36

410,000
412,000
414,000
416,000
418,000

–
–
–
–
–

412,000
414,000
416,000
418,000
420,000

.14
.13
.12
.11
.10

153,000
155,000
157,000
159,000
161,000

–
–
–
–
–

155,000
157,000
159,000
161,000
163,000

.35
.34
.33
.32
.31

420,000
422,000
424,000
426,000
428,000

–
–
–
–
–

422,000
424,000
426,000
428,000
430,000

.09
.08
.07
.06
.05

163,000
165,000
167,000
169,000
171,000
173,000

–
–
–
–
–
–

165,000
167,000
169,000
171,000
173,000
175,000

.30
.29
.28
.27
.26
.25

430,000
432,000
434,000
436,000
438,000

–
–
–
–
–

432,000
434,000
436,000
438,000
No limit

.04
.03
.02
.01
.00

But not over:
$125,000
127,000
129,000
131,000
133,000

The decimal amount
to enter on line 8 is:
.50
.49
.48
.47
.46

Line 9b

But not over:
$177,000
179,000
181,000
183,000
400,000

The decimal amount
to enter on line 8 is:
.24
.23
.22
.21
.20

credit you can take in 2021. To figure the credit, complete
Worksheet A at the end of these instructions. Enter on
line 9b the amount from line 13 of Worksheet A. The

If you had qualified expenses for 2020 that you didn't pay
until 2021, you may be able to increase the amount of the
-6-

Instructions for Form 2441 (2021)

whether your dependent care plan was amended. Unused
amounts from 2020 are added to the $10,500 ($5,250 if
married filing separately) maximum amount of dependent
care benefits that are allowed for 2021. For more
information about these rules, see Notice 2021-15,
2021-10 I.R.B. 898, available at IRS.gov/irb/
2021-10_IRB#NOT-2021-15, and Notice 2021-26,
2021-21 I.R.B. 1157, available at IRS.gov/irb/
2021-21_IRB#NOT-2021-26.

amount on line 9b is a refundable credit for 2021 if you
checked the box on line B.

Line 10

Add lines 9a and 9b and enter the result on line 10. If you
checked the box on line B, this is your refundable credit
for child and dependent care expenses; enter the amount
from this line on Schedule 3 (Form 1040), line 13g, and
don’t complete line 11. If you didn’t check the box on line
B, go to line 11.

DRAFT AS OF
October 26, 2021

Temporary carryforward rule for dependent care
FSAs where dependent aged out during the COVID-19 pandemic. Section 214 of the Taxpayer Certainty
and Disaster Tax Relief Act of 2020 allows your employer
to amend its dependent care plan to extend the maximum
age of eligible dependents from 12 to 13 for dependent
care FSAs for unused amounts from the 2020 plan year
carried over into the 2021 plan year. Your employer can
tell you whether your dependent care plan was amended.
If your employer’s plan has adopted this change, you may
use unused dependent care benefits from the 2020 plan
year carried over into the 2021 plan year to pay for a child
under age 14 for 2021. This relief only applies to amounts
received from a dependent care plan and entered on
Form 2441, line 13; it does not apply to amounts you paid
outside of a dependent care plan. For more information
about this relief, see Notice 2021-15.

Line 11

!

CAUTION

Only complete line 11 if you did not check the box
on line B. If you checked the box on line B, leave
line 11 blank.

If you didn’t check the box on line B, your credit is
nonrefundable and limited by the amount of your tax. You
may not enter on Schedule 3 (Form 1040), line 13g, the
amount from line 10. Instead, you must complete the
Credit Limit Worksheet next to figure the amount to enter
on line 11. The nonrefundable credit on line 11 is reported
on Schedule 3 (Form 1040), line 2.

Credit Limit Worksheet
1. Enter the amount from Form 2441, line 10

. . . . . . .

2. Enter the amount from Form 1040, 1040-SR, or
1040-NR, line 18 . . . . . . . . . . . . . . . . . . . . . .
3. Enter the amount from Schedule 3 (Form 1040), line 1
(foreign tax credit) and line 6l (Form 8978, line 14) . .
4. Subtract line 3 from line 2. If zero or less, stop; you can’t
take the credit . . . . . . . . . . . . . . . . . . . . . . .
5. Enter the smaller of line 1 or line 4 here; also enter this
amount on Form 2441, line 11, and on Schedule 3
(Form 1040), line 2 . . . . . . . . . . . . . . . . . . . .

1.

Line 14

2.

If you had an employer-provided dependent care plan,
enter on line 14 the total of the following amounts included
on line 12 or 13.
• Any amount you forfeited. You forfeited an amount if
you didn't receive it because you didn't incur the expense.
Don't include amounts you expect to receive at a future
date.
• Any amount you didn't receive but are permitted by your
employer to carry forward and use in the following year.

3.
4.

5.

Line 12

Example. Under your employer's dependent care
plan, you chose to have your employer set aside $5,000
to cover your 2021 dependent care expenses. The $5,000
is shown in box 10 of your Form W-2. In 2021, you
incurred and were reimbursed for $4,950 of qualified
expenses. You would enter $5,000 on line 12 and $50, the
amount forfeited, on line 14. You would also enter $50 on
line 14 if, instead of forfeiting the amount, your employer
permitted you to carry the $50 forward to use during the
grace period in 2022.

Enter the total amount of dependent care benefits you
received in 2021. The ARP increased the maximum
amount that can be excluded from an employee’s income
through a dependent care assistance program. For 2021,
the amount is increased to $10,500 (previously $5,000).
For married employees filing separate returns, the amount
is increased to $5,250 (previously $2,500).

Line 13

If you had an employer-provided dependent care plan,
your employer may have permitted you to carry forward
any unused amount from 2020 to use in 2021. Enter on
line 13 the amount you carried forward and used in 2021.

Don't enter on line 14 any amounts that aren't
already entered on line 12 or 13. Therefore, if you
CAUTION carried forward dependent care benefits from
2020 to 2021, and you didn't use the benefits in 2021 and
are carrying the benefits forward to 2022, as described in
Notice 2021-26, you would not enter these amounts on
line 12, 13, or 14.

!

Temporary special rules for unused amount in dependent care FSAs. Section 214 of the Taxpayer
Certainty and Disaster Tax Relief Act of 2020 allows your
employer to amend its dependent care plan to allow
employees to carry over unused benefits from a plan year
ending in 2020 to a plan year ending in 2021 and from a
plan year ending in 2021 to a plan year ending in 2022.
Alternatively, your employer may extend the claims period
for a plan year ending in 2020 or 2021 to 12 months after
the end of the plan year for unused benefits remaining in
the dependent care FSA. Your employer can tell you
Instructions for Form 2441 (2021)

Line 15

Add the amounts on lines 12 and 13 and subtract from
that total the amount on line 14. Enter the result on line 15.

-7-

Line 16

your nontaxable combat pay in the amount you enter on
line 18 (line 19 for your spouse if filing jointly).
If you are filing jointly and both you and your spouse
received nontaxable combat pay, you can each make
your own election. (In other words, if one of you makes the
election, the other one can also make it but doesn't have
to.) The amount of your nontaxable combat pay should be
shown in box 12 of your Form(s) W-2 with code Q.

Enter the total of all qualified expenses incurred in 2021
for the care of your qualifying person(s). It doesn't matter
when the expenses were paid.
Example. You received $2,000 in cash under your
employer's dependent care plan for 2021. The $2,000 is
shown in box 10 of your Form W-2. Only $900 of qualified
expenses were incurred in 2021 for the care of your
5-year-old dependent child. You would enter $2,000 on
line 12 and $900 on line 16.

DRAFT AS OF
October 26, 2021
You can choose to include your nontaxable

TIP combat pay in earned income when figuring your

exclusion or deduction, even if you choose not to
include it in earned income for the earned income credit
(EIC) or the credit for child and dependent care expenses.

Line 18

If filing jointly, figure your and your spouse's earned
income separately. Enter your earned income on line 18
and your spouse's earned income on line 19. If your filing
status is married filing separately or you or your spouse
was a student or disabled, see the instructions for line 19,
later.

!

CAUTION

Earned income for figuring the amount of dependent
care benefits you are able to exclude or deduct from your
income generally includes the following amounts.
1. The amount shown on Form 1040 or 1040-SR,
line 1; or Form 1040-NR, line 1a, minus any amount:
a. Included for a scholarship or fellowship grant that
wasn't reported to you on a Form W-2,
b. Excluded as foreign earned income (including any
housing exclusion) on Form 2555, line 43,
c. Also reported on Schedule SE (Form 1040)
because you were a member of the clergy or you received
$108.28 or more of church employee income,
d. Received for work performed while an inmate in a
penal institution, or
e. Received as a pension or annuity from a
nonqualified deferred compensation plan or a
nongovernmental section 457(b) plan. This amount may
be reported in box 11 of Form W-2. If you received such
an amount but box 11 is blank, contact your employer for
the amount received as a pension or annuity.
2. The amount shown on Schedule SE (Form 1040),
line 3, minus any deduction you claim on Schedule 1
(Form 1040), line 15.
If you use either optional method to figure
self-employment tax, subtract any deduction you claim on
Schedule 1 (Form 1040), line 15, from the total of the
amounts shown on Schedule SE (Form 1040), lines 3 and
4b.
If you received church employee income of $108.28 or
more, subtract any deduction you claim on Schedule 1
(Form 1040), line 15, from the total of the amounts shown
on Schedule SE (Form 1040), lines 3, 4b, and 5a.
3. If you are filing Schedule C (Form 1040) as a
statutory employee, the amount shown on line 1 of the
schedule.
4. Nontaxable combat pay, if you elect to include it in
earned income. However, including this income will only
give you a larger exclusion or deduction if your (or your
spouse's) other earned income is less than the amount
entered on line 17. To make the election, include all of

!

For purposes of line 18, earned income doesn't
include any dependent care benefits shown on
line 12.
You must reduce your earned income by any loss
from self-employment.

CAUTION

Special Situations
• If you are filing jointly, disregard community property
laws in determining the earned income of an individual.
• If your spouse was a full-time student or disabled in
2021, see the instructions for lines 4 and 5, earlier.

Line 19

If your filing status is married filing separately, see Married
Persons Filing Separately, earlier. Are you considered
unmarried under that rule?
Yes. Enter your earned income (from line 18) on line 19.
On line 21, enter $10,500 plus any amount you entered on
line 13.
No. Enter your spouse's earned income on line 19. If you
or your spouse was a full-time student or disabled in 2021,
see the instructions for lines 4 and 5. On line 21, enter
$5,250 plus any amount you entered on line 13.

Line 24

Include your deductible benefits in the total entered on
Schedule C (Form 1040), line 14; Schedule E (Form
1040), line 19 or line 28; or Schedule F (Form 1040),
line 15, whichever applies.

Line 26

If line 26 is more than zero, you have taxable dependent
care benefits. Include this amount in the total on Form
1040 or 1040-SR, line 1; or Form 1040-NR, line 1a,
whichever applies. Enter “DCB” in the space to the left of
that line to show that taxable dependent care benefits are
included in that amount.

Lines 27 Through 31

If you are reporting dependent care benefits in Part III of
the form, you will need to complete lines 27 through 31 if
you are also claiming the credit for child and dependent
care expenses in Part II of the form.

-8-

Instructions for Form 2441 (2021)

Worksheet A. Worksheet for 2020 Expenses Paid in 2021

Keep for Your Records

Use this worksheet to figure the credit you may claim for 2020 expenses paid in 2021.

1.

Enter the amount reported on your 2020 Form 2441, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2.

Enter your 2020 qualified expenses paid in 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3.

Add the amounts on lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4.

Enter $3,000 if you had one qualifying person ($6,000 if you had two or more) . . . . . . . . . . . . . . . . . . . . . 4.

5.

Enter any dependent care benefits received for 2020 and deducted on your return and/or excluded
from your income (from your 2020 Form 2441, lines 24 and 25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
Subtract the amount on line 5 from the amount on line 4 and enter the result . . . . . . . . . . . . . . . . . . . . . . . 6.

6.
7.

DRAFT AS OF
October 26, 2021

8.

Compare your earned income for 2020 and your spouse's earned income for 2020 and enter the
smaller amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
Compare the amounts on lines 3, 6, and 7, and enter the smallest amount . . . . . . . . . . . . . . . . . . . . . . . . 8.

9.

Enter the amount on which you figured the credit for 2020 (from your 2020 Form 2441, line 6) . . . . . . . . 9.

10.

Subtract the amount on line 9 from the amount on line 8 and enter the result. If zero or less, stop here.
You can't increase your 2021 credit by any previous year's expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
Enter your 2020 adjusted gross income (from your 2020 Form 1040, 1040-SR, or 1040-NR,
line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
Find your 2020 adjusted gross income in the table below and enter the corresponding decimal amount
here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

11.
12.

IF your 2020 adjusted gross income is:
Over:
But not over:
$ 0
—
$15,000
15,000
—
17,000
17,000
—
19,000
19,000
—
21,000
21,000
—
23,000
23,000
—
25,000
25,000
—
27,000
27,000
—
29,000
29,000
—
31,000
31,000
—
33,000
33,000
—
35,000
35,000
—
37,000
37,000
—
39,000
39,000
—
41,000
41,000
—
43,000
43,000
—
No limit

THEN the decimal
amount is:
0.35
0.34
0.33
0.32
0.31
0.30
0.29
0.28
0.27
0.26
0.25
0.24
0.23
0.22
0.21
0.20

13.

Multiply line 10 by line 12 and enter the amount here and on Form 2441, line 9b . . . . . . . . . . . . . . . . . . . 13.

14.

Name, address, and identifying number of persons or organizations who provided the care:

15.

First and last name and taxpayer identification number of the qualifying person that received the care:

Attach to your tax return a copy of this worksheet or a statement explaining how you figured the credit for prior year expenses that
includes all the same information that is in the worksheet, including the name, address, and taxpayer identification number of the
persons or organizations providing the care and the name and taxpayer identification number of the person for whom you paid for
care.

Instructions for Form 2441 (2021)

-9-