What this line means
The name, address, taxpayer identification number (TIN), and amount paid to each person or organization that provided care for your qualifying child or dependent. You must identify every care provider who received payment during the year. If you paid a daycare center, nanny, babysitter, or after-school program, list them here. If the provider is tax-exempt, enter “Tax-Exempt” in the TIN column instead of a number. 1
If you made a good-faith effort to get the provider’s TIN but could not obtain it, attach a statement explaining what you did to request it. You can still claim the credit as long as you show due diligence. 2
Does this apply to you?
- You paid someone to care for a child under age 13 so you could work or look for work
- You paid for care of a spouse or dependent who is physically or mentally unable to care for themselves
- You used a daycare center, in-home nanny, babysitter, au pair, or after-school program
- You paid a relative (other than your dependent or your child under age 19) to provide care
- You paid a summer day camp for your qualifying child
Easy to overlook
Providers you paid in cash Babysitters, neighborhood caregivers, and informal arrangements still count as care providers. If you paid cash, you still need the provider’s name, address, and TIN. Many filers skip these payments and lose legitimate credit dollars. 1 IRS Form 2441 instructions — Line 1
Tax-exempt organizations do not need a TIN Church-run daycares, nonprofit preschools, and other tax-exempt care providers do not have to give you a TIN. Enter “Tax-Exempt” in the TIN column. Filers who leave the TIN blank without this notation risk having the credit denied. 2 IRS Publication 503 — Child and Dependent Care Expenses
Watch out for this
You cannot list your spouse, the parent of your qualifying child (if the child is under age 13), your dependent, or your child who is under age 19 at the end of the year as a care provider. Payments to these people do not generate the credit, no matter how much you paid them. If Grandma is your dependent and you pay her to watch your kids, those payments do not qualify.
Footnotes
-
IRS Form 2441 Instructions, Line 1 — Care Provider Information. https://www.irs.gov/pub/irs-pdf/i2441.pdf ↩ ↩2
-
IRS Publication 503, Child and Dependent Care Expenses. https://www.irs.gov/pub/irs-pdf/p503.pdf ↩ ↩2