IRS Publication 503 (Child and Dependent Care Expenses) (for 2018 Returns)
Available at http://www.irs.gov/pub/irs-pdf/p503.pdf
The IRS has updated Publication 503 for use in preparing 2018 tax returns. Publication 503 explains the requirements that taxpayers must meet to claim the dependent care tax credit (DCTC) under Code § 21 for child and dependent care expenses. The only substantive changes to the 2018 version of Publication 503 reflect the suspension of personal exemptions for tax years 2018–2025 and the elimination of Forms 1040A and 1040-EZ.
EBIA Comment: Publication 503 is written primarily to help taxpayers determine whether expenses qualify for the DCTC. While similar requirements must be met for expenses to be reimbursable under a DCAP, there are some differences, so caution is advised when consulting the publication for this purpose. For example, the DCTC and DCAPs have different rules about the maximum amount and timing of expenses that can be considered. For more information, see EBIA’s Cafeteria Plans manual at Sections XXIII.C (“DCAP Participation vs. Claiming the Dependent Care Tax Credit”) and XXIV (“What Expenses Can Be Reimbursed Under a DCAP?”).
Contributing Editors: EBIA Staff.