Example #1

A husband and wife have out-of-pocket child care expenses of $13,500 for 2 children, ages 9 and 11 so that they both can work. Earned income reported on U..S.  Form 2441: Husband = $18,500; Wife = $9,200.

2013 Line 12 Worksheet (Line 16 for Part-year Residents and Nonresidents) -- Child under 13 or Disabled Dependent/Spouse Care Deduction

Complete the following Form1, Line 12 Worksheet to calculate your Massachusetts child under age 13 or disabled dependent/spouse care deduction. 

Note: You cannot claim this deduction if married filing a separate U.S. 1040 or 1040A return. If you are filing a joint U.S. 1040 or 1040A return but are married filing separately for Massachusetts purposes, either spouse may claim the deduction for expenses he or she incurred, but their combined deduction cannot exceed $4,800 for one qualifying individual or $9,600 for two or more qualifying individuals.

Taxpayers who received dependent care benefits should complete a pro forma U.S. Form 2441. When completing this pro forma form, taxpayers should enter $4,800 (or $9,600 for two or more qualifying persons) in line 27 of U.S. Form 2441. The amount from this pro forma Form 2441, line 31 should then be entered in line 1 of the following worksheet.

Part-year residents, enter amounts paid while a Massachusetts resident.

1. Enter the amount of qualified expenses you incurred and paid in 2013 for a qualifying person(s). This amount may exceed the federal limit of $3,000 for one qualifying person or $6,000 for two or more persons. However, do not enter more than $4,800 for one qualifying person or $9,600 for two or more persons

$9,600

2. Enter the amount from U.S. Form 2441, line 4

$18,500

3. Enter the amount from U.S. Form 2441, line 5

$9,200

4. Enter the smallest of line 1, 2 or 3

$9,200

5. If you paid 2012 expenses in 2013, enter the amount of the allowed 2012 expenses used to compute the credit on U.S. Form 2441 Otherwise, enter "0"

$0

6. Residents, add lines 4 and 5. Not to exceed more than $4,800 for one qualifying person or $9,600 for two or more persons. Enter here and in Form 1, line 12

$9,200

7. Part-year residents, enter here the amount from line 6 and in Form 1-NR/PY, line 16; nonresidents, multiply line 6 by Form 1-NR/PY, line 14g and enter the result here and in Form 1-NR/PY, line 16

 

Note:

  • Residents: If taxpayer chooses to take a deduction in line 12, you cannot take the deduction in line 13
  • Nonresidents: If taxpayer chooses to take a deduction in line 12, you cannot take the deduction in line 13.

Example #2- Reduction for Dependent Care Benefits

A full year resident taxpayer has out of pocket child care expenses for 2 children of $11,000; $5,000 is excluded from her wages as dependent care benefits. Earned income reported on U.S.  Form 2441 is $28,500. 

Wages$25,000
DCB exclusion($5,000)
W-2 wages, box 1$20,000

The excluded dependent care benefits of $5,000 must reduce the maximum allowable deduction amount of $9,600 for two children:
Maximum Allowed for Massachusetts$9,600
Dependent care benefits($5,000)
Allowable deduction for Massachusetts$4,600

2013 Line 12 Worksheet (Line 16 for Part-year Residents and Nonresidents) -- Child under 13 or Disabled Dependent/Spouse Care Deduction

Complete the following Form1, Line 12 Worksheet to calculate your Massachusetts child under age 13 or disabled dependent/spouse care deduction. 

Note: You cannot claim this deduction if married filing a separate U.S. 1040 or 1040A return. If you are filing a joint U.S. 1040 or 1040A return but are married filing separately for Massachusetts purposes, either spouse may claim the deduction for expenses he or she incurred, but their combined deduction cannot exceed $4,800 for one qualifying individual or $9,600 for two or more qualifying individuals.

Taxpayers who received dependent care benefits should complete a pro forma U.S. Form 2441. When completing this pro forma form, taxpayers should enter $4,800 (or $9,600 for two or more qualifying persons) in line 27 of U.S. Form 2441. The amount from this pro forma Form 2441, line 31 should then be entered in line 1 of the following worksheet.

Part-year residents, enter amounts paid while a Massachusetts resident.

1. Enter the amount of qualified expenses you incurred and paid in 2013 for a qualifying person(s). This amount may exceed the federal limit of $3,000 for one qualifying person or $6,000 for two or more persons. However, do not enter more than $4,800 for one qualifying person or $9,600 for two or more persons

$4,600

2. Enter the amount from U.S. Form 2441, line 4$28,500
3. Enter the amount from U.S. Form 2441, line 5

$0

4. Enter the smallest of line 1, 2 or 3

$4,600

5. If you paid 2012 expenses in 2013, enter the amount of the allowed 2012 expenses used to compute the credit on U.S. Form 2441, line 9, Otherwise, enter "0"

$0

6. Residents, add lines 4 and 5.Not to exceed more than $4,800 for one qualifying person or $9,600 for two or more persons Enter here and in Form 1, line 12

$4,600

7. Part-year residents, enter here the amount from line 6 and in Form 1-NR/PY, line 16; nonresidents, multiply line 6 by Form 1-NR/PY, line 14g and enter the result here and in Form 1-NR/PY, line 16 

Note:

  • Residents: If you choose to take a deduction in line 12, you cannot take the deduction in line 13.
  • Nonresidents: If you choose to take a deduction in line 12, you cannot take the deduction in line 13.

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