New York Tax Form IT-216 - Claim for Child and Dependent Care Credit Instructions

General information

The New York State child and dependent care credit is a minimum of 20% and as much as 110% of the federal credit, depending on the amount of your New York adjusted gross income.

The New York City child and dependent care credit can be as much as 75% of the New York State child and dependent care credit, depending on the amount of your federal adjusted gross income.

Who qualifies

New York State credit

If you qualify to claim the federal child and dependent care credit, you can claim the New York State credit (whether you actually claim the federal credit or not).

If you did not file federal Form 2441 to claim the federal child and dependent care credit, you can still claim the New York State child and dependent care credit on Form IT-216 if all four of the following apply:

  1. Your filing status is Single, Head of household, Qualifying widow(er) with dependent child, or Married filing joint return. However, see special rule for Married persons filing separate federal and New York State returns below.
  2. The care was provided so you (and your spouse, if you were married) could work or look for work. However, if you did not find a job and have no earned income for the year, you cannot take the credit. If your spouse was a student or disabled, see the line 7 instructions on page 3.
  3. Your child (or other qualifying person(s) for whom the care was provided) lived in the same home with you for more than half the year.
  4. The person who provided the care was not your spouse, the parent of your qualifying child under age 13, or a person whom you can claim as a dependent. If your child provided the care, he or she must have been age 19 or older by the end of 2009.

 Married persons filing separate federal and New York State returns - If your filing status is Married filing separate return and all of the following apply, you are considered unmarried for purposes of computing the child and dependent care credit:

  • you lived apart from your spouse during the last six months of 2009; and
  • the qualifying person lived in your home more than half of 2009; and
  • you provided over half the cost of keeping up your home.

If you meet all the requirements to be treated as unmarried and meet items 2 through 4 above, you may claim the credit.If you do not meet all the requirements to be treated as unmarried, you cannot claim the credit.

Married persons filing joint federal returns, but required to file separate New York State returns - If you and your spouse file jointly for federal purposes, but are required to file separate New York State returns because one spouse is a resident and the other spouse is either a nonresident or part-year resident, you may still claim the credit. However, the credit must be claimed on the return of the spouse with the lower taxable income (computed without regard to the credit).

Married persons not required to file a federal return - If you and your spouse are not required to file a federal income tax return, the New York State child and dependent care credit is allowed only if you file a joint New York State tax return (Form IT-150, IT-201, or IT-203).

New York City credit

To qualify for the New York City child and dependent care credit you must:

  • qualify to claim the New York State child and dependent care credit;
  • have paid qualified expenses for a qualifying person who was under age four on December 31, 2009;
  • have federal adjusted gross income of $30,000 or less; and
  • have been a full-year or part-year resident of New York City for 2009.

 Married persons filing joint federal returns, but required to calculate New York City taxes separately - If you and your spouse file jointly for federal purposes, but are required to calculate your New York City taxes separately because one spouse is a resident and the other spouse is a nonresident or part-year resident, you may still be able to claim the credit. In this instance, the credit must be applied against the spouse with the lower taxable income (computed without regard to the credit). However, if the spouse with the lower taxable income is a nonresident of New York City, neither you nor your spouse may claim the credit.

Married persons not required to file a federal return - If you and your spouse are not required to file a federal income tax return, the New York City child and dependent care credit is allowed only if you file a joint New York State income tax return.

How to claim the credit

In addition to meeting the above federal requirements, to claim the New York State or New York City child and dependent care credit you must:

  • file a New York State income tax return for 2009,
  • report the required information about the care provider on line 2 of Form IT-216, and
  • complete Form IT-216.

Important terms

A qualifying person is:

  • A qualifying child under age 13 whom you can claim as a dependent (but see Special rule for children of divorced or separated parents on page 2). 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.
  • Your spouse who is disabled and not able to care for himself or herself.
  • Any person who is disabled and not able to care for himself or herself whom you can claim as a dependent (or could claim as a dependent except that the person had gross income of $3,650 or more or filed a joint return).
  • Any person who is disabled and not able to care for himself or herself whom you could claim as a dependent except that you (or your spouse if filing a joint return) could be claimed as a dependent on someone else’s 2009 return.

If you are divorced or separated, see Special rule for children of divorced or separated parents on the next page.

To find out who is a qualifying child and who is a dependent, see federal Publication 501, Exemptions, Standard Deduction, and Filing Information.

Caution: To be a qualifying person, the person must have lived with you for more than half of 2009.

Special rule for children of divorced or separated parents - Even if you cannot claim your child as a dependent, he or she is treated as your qualifying person if:

  • The child was under age 13 or was physically or mentally not able to care for himself or herself; and
  • You were the child’s custodial parent (the parent with whom the child lived for the greater part of 2009).

The noncustodial parent cannot 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.

To find out when a noncustodial parent is entitled to claim the dependency exemption for a child, see federal Publication 501.

Dependent care benefits - include amounts your employer paid directly to either you or your care provider for the care of your qualifying person(s) while you worked. These benefits also include the fair market value of care in a day-care facility provided or sponsored by your employer and pre-tax contributions you made under a dependent care flexible spending arrangement (FSA). 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 2009 federal W-2 form(s).

Benefits you received as a partner should be shown in box 13 of your Schedule K-1 (federal Form 1065).

Qualified expenses - include amounts paid for household services and care of the qualifying person(s) while you worked or looked for work. Child support payments are not qualified expenses. Expenses reimbursed by a state social service agency are not qualified expenses unless you included the reimbursement in your income. Also, expenses paid through a dependent care account are not qualified expenses.

Generally, if you worked or actively looked for work during only part of the period in which you incurred the expenses, you must compute your expenses for each day. However, there are special rules for temporary absences or part-time work. See federal Publication 503, Child and Dependent Care Expenses, for more details.

Household services - are services needed to care for the qualifying person as well as to run the home. 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(s). Do not include services of a chauffeur or gardener.

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

Care of the qualifying person - includes the cost of services for the qualifying person’s well-being and protection. It does not include the cost of clothing or entertainment.

You may include the cost of care provided outside your home for your dependent under age 13 or any other qualifying person(s) 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 a fee, payment, or grant for providing services for any of those persons, even if the center is not run for profit.

You may include amounts paid for food and schooling only if these items are part of the total care and cannot be separated from the total cost. But do not 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 soccer. But, do not include any expenses for sending your child to an overnight camp, summer school, or a tutoring program.

Some dependent care expenses for a qualifying person who is disabled may qualify as medical expenses if you itemize deductions on federal Schedule A (Form 1040). However, you cannot claim the same expense as both a dependent care expense and a medical expense. For more information on qualifying medical expenses, see federal Publication 503 and Publication 502, Medical and Dental Expenses.

Prior year’s expenses - If you had qualified expenses for 2008 that you didn’t pay until 2009, you may be able to claim these qualified expenses and increase the amount of credit you can take in 2009. For more information, see Amount of Credit in federal Publication 503. Also see the instructions for line 11 on page 4.

Earned income - Generally, this is your wages, salaries, tips, and other taxable employee compensation. This is the amount shown on Form IT-150 or Form IT-201, line 1, or Form IT-203, line 1, Federal amount column, reduced by:

  • any amount for a scholarship or fellowship grant if you did not get a wage and tax statement (federal Form W-2) for it;
  • any amount also reported on federal Schedule SE because you were a member of the clergy or a church employee;
  • any amount received for work performed while an inmate in a penal institution; and
  • any amount received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernment section 457 plan.

Earned income no longer includes employee compensation that is nontaxable. However, you can elect to include any nontaxable combat pay in earned income to compute your credit. For more information, see federal Publication 503.

If you were a statutory employee and are filing Schedule C or C-EZ with your federal return to report income and expenses as a statutory employee, earned income also includes the amount from line 1 of that Schedule C or C-EZ.

If you were self-employed, earned income also includes the amount shown on federal Schedule SE, line 3, minus any deduction you claim on federal Form 1040, line 27. If you use either optional method to compute self-employment tax, subtract any deduction you claim on federal Form 1040, line 27, from the total of the amounts on federal Schedule SE, Section B, lines 3 and 4b. If you received church employee income of $108.28 or more, subtract any deduction you claim on federal Form 1040, line 27, from the total of the amounts shown on Schedule SE, Section B, lines 3, 4b, and 5a.

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

If you are filing a joint federal return, disregard community property laws. If your spouse died in 2009 and had no earned income, see federal Publication 503. If your spouse was a student or disabled in 2009, see the line 7 instructions on the next page.

Line instructions

See the instructions for your tax return for the Privacy notification or if you need help contacting the Tax Department.

New York State resident, nonresident, and part-year residents complete lines 1 through 14.

Part-year New York State residents must also complete lines 15 through 22.

New York City residents and part-year residents must also complete lines 23 through 30, as applicable.

Line 1

File Form IT-216 with your 2009 New York State income tax return. If you have already filed your return, you must file an amended return and attach Form IT-216.

Line 2

Complete columns A through D for each person or organization that provided the care. If you have more than two providers, enter the required identifying information for two providers in the spaces provided on the form. Attach a statement to your return with the same required identifying information for the additional providers. Be sure to put your name and social security number on the statement. You can use federal 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 do not give correct or complete information, your credit may be disallowed unless you can show you used due diligence (a serious and earnest effort) in trying to get the required information.

You can show due diligence to get the information by keeping in your records a federal 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 does not give you the information, complete the entries you can on line 2 of Form IT-216. For example, enter the provider’s name and address. Write See attached in the columns for which you do not have the information. Then, attach an explanation to your Form IT-216 indicating that the care provider did not give you the information you requested.

Line 2 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, write See Form IT-2 in column B. Then leave columns C and D blank. 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.

Line 2 column C - If the care provider is an individual, enter his or her social security number (SSN). Otherwise, enter the provider’s employer identification number (EIN). If the provider is a tax-exempt organization, write Taxexempt in column C.

Line 2 column D - Enter the total amount you actually paid in 2009 to the care provider. Also include amounts your employer paid to a third party on your behalf. It does not matter when the expenses were incurred. Do not reduce this amount by any reimbursement you received.

Line 3

Complete columns A through F for each qualifying person you paid qualified expenses for in 2009. List the qualifying persons in order from youngest to oldest. If you have more than four qualifying persons, mark an X in the box at line 3. Enter the required information for four qualifying persons in the spaces provided on the form. If you need more space, list all additional qualifying persons with the required information in the same format on a separate sheet of paper and attach it to Form IT-216. Write your name and SSN on all additional sheets.

Line 3 columns A and B - List the name of the qualifying person who received the care.

Line 3 column C - Enter all qualified expenses you incurred and paid in 2009 for the person listed in columns A and B without regard to federal child and dependent care credit limitations. Do not include in column C the following expenses:

  1. Qualified expenses you incurred in 2009 but did not pay until 2010. However, next year you may be able to use these expenses to increase your 2010 credit.
  2. Qualified expenses you incurred in 2008 but did not pay until 2009. If you had prior year expenses you did not pay until 2009, see the instructions for line 11 on the next page.
  3. Qualified expenses prepaid in 2009 for care to be provided in 2010. These expenses can only be used to compute your 2010 credit.
  4. Expenses you paid through a dependent care account.

For more information, see Qualified expenses on page 2.

Line 3 column D - Mark an X in the box in column D, Person with disability, if the qualifying person had a disability and was incapable of caring for himself or herself during 2009.

Line 3 column E - Enter the qualifying person’s SSN.

Caution: To be eligible to claim the New York State child and dependent care credit, you must provide a correct and valid SSN for each person listed on your tax return. If the Internal Revenue Service (IRS) has issued you an individual taxpayer identification number (ITIN) because either you or a qualifying person claimed on Form IT-216 is a resident or nonresident alien, enter this ITIN in place of the social security number.

If you have applied for a social security number by filing federal Form SS-5 with the Social Security Administration, or you have applied for an ITIN by filing federal Form W-7 with the IRS, but you have not received your SSN or ITIN by the due date of your return, you can either:

  1. File Form IT-370, Application for Automatic Six-Month Extension of Time to File for Individuals, to request an automatic extension of time to file until October 15, 2010. (This extension does not give you any extra time to pay any tax owed. You should pay any New York taxes you expect to owe to avoid interest or penalty charges. For more information, see Form IT-370).
  2. File your return on time without claiming the child and dependent care credit and do not attach Form IT-216. After receiving the SSN or ITIN, file an amended return and attach Form IT-216 to claim the credit.

Line 3 column F - Enter the qualifying person’s year of birth.

Line 6

Enter only your earned income on line 6 (do not include your spouse’s). If this amount is zero or less, stop. You cannot claim the New York State or New York City child and dependent care credit. For more information, see Earned income on the previous page.

Line 7

If you are filing your return using filing status ., Married filing joint return, enter only your spouse’s earned income on line 7. If this amount is zero or less, stop. You cannot claim the New York State or New York City child and dependent care credit. If you are using any other filing status, enter the amount from line 6 on line 7.

Spouse who was a student or disabled - Your spouse was a student if he or she was enrolled as a full-time student at a school during any five months of 2009. Your spouse was disabled if he or she was not physically or mentally capable of self-care. Compute 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 other earned income for each month is considered to be at least $250 ($500 if more than one qualifying person was cared for in 2009). 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. If, in the same month, both you and your spouse were either students or disabled, this rule applies to only one of you for that month.

For any month that your spouse was not disabled or a student, use your spouse’s actual earned income if he or she worked during the month.

Line 8

Enter the smallest of line 5, 6, or 7. Federal limitations require you to use the lesser of qualified expenses, your earned income, or your spouse’s earned income (if applicable) in the computation of the federal credit.

Line 9

Enter your federal adjusted gross income from federal Form 1040A, line 22, or federal Form 1040, line 38.

Line 10

Enter on line 10 the appropriate decimal amount for your federal adjusted gross income shown on line 9 from the table .

Line 11

This is your eligible federal child and dependent care credit before any federal limitation. If you claimed the child and dependent care credit on your federal return, the amount shown on Form IT-216, line 11, should be the same as the amount shown on federal Form 2441, line 9, before any federal limitation.

If you had qualified expenses for 2008 that you didn’t pay until 2009, you may be able to claim these qualified expenses and increase the amount of credit you can take in 2009. If you can take a credit for 2008 expenses paid in 2009, write PYE and the amount of the credit you are claiming for prior year expenses on the dotted line next to line 11. Also include this amount in the line 11 amount box. Attach a statement showing how you computed the credit for 2008 expenses.

Line 12

Transfer the amount from line 11 to line 12, and complete the remainder of Form IT-216.

Line 13

For 2009, the New York State child and dependent care credit is a minimum of 20% and as much as 110% of the federal credit, depending on the amount of your New York adjusted gross income. Enter in the space provided your New York adjusted gross income using the following:

  • Form IT-150 filers - amount from line 21 of Form IT-150.
  • Form IT-201 filers - amount from line 33 of Form IT-201.
  •  Form IT-203 filers - amount from line 32 of Form IT-203.

Line 14

Enter the amount from line 14 as follows: If you do not qualify to claim the New York City child and dependent care credit (see New York City credit under Who qualifies on page 1 of these instructions), enter the line 14 amount as follows:

  • Residents: Enter the line 14 amount on Form IT-150, line 39, or Form IT-201, line 64.
  •  Nonresidents: Enter the line 14 amount on Form IT-203, line 41.
  •  Part-year residents: Enter the line 14 amount on Form IT-203, line 41, and continue on line 15 of Form IT-216.

If you qualify to claim the New York City child and dependent care credit, follow the instructions below for your filing status.

  • Full-year New York State residents and full-year or part-year New York City residents: continue on line 23 in the New York City child and dependent care credit section.
  • Part-year New York State residents and part-year New York City residents: Enter the line 14 amount on Form IT-203, line 41, and continue on line 15 of Form IT-216. Also complete the New York City child and dependent care credit section (lines 23 through 30).

Part-year New York State residents

Lines 15 through 22 need to be completed only by New York State part-year residents claiming the New York State child and dependent care credit who are filing Form IT-203, Nonresident and Part-Year Resident Income Tax Return, for 2009. The amounts for these lines can be found on the appropriate lines of Form IT-203 or Form IT-203-ATT, Other Tax Credits and Taxes, or the instructions for Form IT-203.

The New York State child and dependent care credit must first reduce your tax liability to zero before the remaining excess is eligible to be refunded. The amount to be refunded will be based on the ratio of resident period income to the combined income from both the resident and nonresident periods.

Line 21 - Divide line 19 by line 20 and round the result to the fourth decimal place. Do not enter more than 100% (1.0000) even if your actual result is more than 100%. If the result is zero percent (0%), you have no remaining excess New York State child and dependent care credit available to be refunded. Do not complete line 22.

Line 22 - If line 21 is greater than 0%, multiply line 18 by line 21 and enter the result on line 22. Transfer the line 22 amount to Form IT-203-ATT, line 9 and attach Form IT-216 to your Form IT-203. This amount represents the refundable portion of your New York State part-year resident child and dependent care credit.

New York City child and dependent care credit

Lines 23 through 30 need to be completed only by full-year and part-year New York City residents who qualify to claim the New York City child and dependent care credit. See New York City credit under Who qualifies on page 1 of these instructions.

Full-year and part-year New York City residents complete line 23. Then complete Worksheet 1 on the next page and enter the applicable figures on Form IT-216, lines 24 through 30.

Line 23 - Enter the total qualified expenses paid for one or more qualifying persons who were under 4 years old on December 31, 2009, and listed on line 3 of Form IT-216 (or an attached sheet).

Worksheet 1 - New York City child and dependent care credit (instructions below)

Caution: If your federal adjusted gross income is over $30,000 or you have no children under 4 years old, stop; you do not qualify for the New York City child and dependent care credit.

1 Amount from line 14 on Form IT-216 .... _________
2 Amount from line 23 on Form IT-216 ...... _________
3 Amount from line 3a on Form IT-216 ..... _________

4 Divide line 2 by line 3 (round the result to the fourth decimal place). This amount cannot exceed 100% (1.0000) .......

_________
5 Multiply line 1 by line 4 ........ _________
6 Enter decimal amount as shown in the New York City child and dependent care credit limitation table on the bottom of page 6 that applies to the amount on Form IT-150, line 11; Form IT-201, line 19; or Form IT-203, line 19, Federal amount column ....... _________

7 Multiply line 5 by line 6 ......

Full-year New York City residents: Enter the line 7 amount on Form IT-216, line 24.
Part-year New York City residents: Continue on line 8 below.

_________

Part-year New York City residents must complete lines 8-13.

8 Enter amount from Form IT-201, line 52 or Form IT-203, line 52a or line 7 above - whichever is less (if you and your spouse are required to calculate your New York City taxes separately, see instructions below). This is your nonrefundable credit.......

  • Form IT-201 filers: Enter the line 8 amount on Form IT-216, line 26.
  • Form IT-203 filers: Enter the line 8 amount on Form IT-216, line 27.
_________

9 Subtract line 8 from line 7. If line 8 is equal to line 7, stop; you do not have a refundable portion ......

_________

10 Enter amount from Form IT-360.1, line 18, column B; also enter this amount on Form IT-216, line 29.......

_________

11 Enter the amount from Form IT-360.1, line 18, column A; also enter this amount on Form IT-216, line 30.......

_________

12 Divide line 10 by line 11 (round the result to the fourth decimal place). This amount cannot exceed 100% (1.0000) .......

_________

13 Multiply line 9 by line 12. This is the refundable portion of your part-year New York City resident New York City child and dependent care credit......

  • Form IT-201 filers: Enter the line 13 amount on Form IT-216, line 24.
  • Form IT-203 filers: Enter the line 13 amount on Form IT-216, line 28.
_________

Instructions for completing Worksheet 1 - New York City child and dependent care credit

Line 1 - You must qualify for the New York State child and dependent care credit in order to claim the New York City child and dependent care credit. Enter the amount from line 14 of Form IT-216.

Line 4 - Divide line 2 by line 3 and round the result to the fourth decimal place. Do not enter more than 100% (1.0000), even if your actual result is more than 100%.

Line 6 - For 2009, the New York City child and dependent care credit can be as much as 75% of the New York State child and dependent care credit, depending on the amount of your federal adjusted gross income. Using the New York City child and dependent care credit limitation table on the bottom of page 6, enter the decimal amount that applies to your federal adjusted gross income as follows:

  • Form IT-150 filers – amount from Form IT-150, line 11
  • Form IT-201 filers – amount from Form IT-201, line 19
  • Form IT-203 filers – amount from Form IT-203, line 19 (Federal amount column)

Part-year New York City residents only (lines 8-13)

Lines 8 through 13 must be completed only by part-year New York City residents claiming the New York City child and dependent care credit.

The New York City child and dependent care credit must first reduce your New York City tax liability to zero before the remaining excess may be refunded. The amount to be refunded will be based

on the ratio of resident period income to the combined income from both the resident and nonresident periods.

Spouses required to calculate New York City taxes separately

If you and your spouse file jointly for federal purposes but are required to calculate your New York City taxes separately, the credit may only be applied against the New York City tax imposed on the spouse with the lower taxable income.

  • If the spouse with the lower taxable income is a full-year resident of New York City, do not complete lines 8 through 13. Transfer the line 7 amount as instructed below line 7 on the worksheet.
  • If the spouse with the lower taxable income is a nonresident of New York City, no New York City child and dependent care credit is allowed.
  • All others complete lines 8 through 13. Enter on line 8 the lesser of line 7 or the New York City tax liability of the spouse with the lower taxable income. Enter on lines 10 and 11 the amounts from line 18, columns A and B on Form IT-360.1 of the spouse with the lower taxable income.

Line 10 - Part-year New York City residents must also enter this amount on Form IT-216, line 29.

Line 11 - Part-year New York City residents must also enter this amount on Form IT-216, line 30.

Line 12 - Divide line 10 by line 11 and round the result to the fourth decimal place. Do not enter more than 100% (1.0000), even if your actual result is more than 100%. If the result is zero percent (0%), you have no remaining excess child and dependent care credit available to be refunded. Stop; do not complete line 13.