If you are a person who plans to ask for a credit that will cover costs on care for your child or any other dependent (for instance, a disabled person), you might need various forms and receipts telling you about your expenses. You will fill out a certain section in your tax return and will have to reveal details about your care providers.
The US Internal Revenue Service (or IRS) has issued IRS Form W-10, a document that you should give to each provider of yours and get it back (filled out by them). This is a one-page document telling basics about you and your provider.
You will not need to submit the form after you receive it; however, it is crucial that you store it in your archive. One day the Service may request it from you.
If your employer provides you with any dependent care plans, you also should receive the document from the plan provider.
You, as a potential claimer of credit, have to complete only one tiny part of the form. You will add a little information about yourself there. The page’s major part should be filled out by your provider. So, the scheme is the following:
To accomplish the first step described, you can use our smart form-building software. It will get you IRS Form W-10 in a couple of seconds. It is also possible to find the form on the Service’s official webpage, but the process might take a bit longer.
See the next part to understand how the form should be filled out. Even though your provider might have created the document before, it is useful to know everything in advance if they have any questions.
The whole procedure will take just a few minutes because the template is extremely easy to complete. Meet your provider and follow the guidelines given below.
Pass the Form to Your Provider
They should fill out Part I only. The provider must insert their name, TIN (taxpayer identification number), and full address. If they use their SSN (social security number) as their TIN, they should mark the designated box.
After they have given all the info, they must verify it by signing the form. Near the signature, they should write the date of signing.
When the whole thing is done, the provider passes the form back to you, and you complete your part.
Fill Out Part II
Your part is Part II. Here, you simply insert your name and address.
As you can notice, the document is simple, and you can create it quickly together with your provider. You will not need any professional help from tax experts to do it.
Bear in mind that having incorrect info in the form may lead to not getting credit if the Service discovers that your form has any mistakes in it. So, ensure that both you and your provider have written everything correctly. Also, remember to store the document in a safe place with other forms.
Your IRS Form W-10 should be accompanied by a couple of copies. Among them is a copy of the provider’s ID showing their SSN (to prove that the one given in the form is right). It is strongly recommended to have some kind of a receipt where one can see the provider’s details: the name, address, and TIN.
You might have a dependent care plan signed by your employer. In this case, it is necessary to get a proving document from your employer.
Finally, you should store a copy of IRS Form W-4 if any of your providers work at your home.
Health care providers in the United States are either individuals or organizations who take care of people’s kids or dependents while people are at work or cannot provide care. So, mostly, these providers are various doctors (if individuals) or hospitals and healthcare centers (if entities).
You will have to submit your tax return to the Service and provide another document, IRS Form 2441, too. This document will describe the costs you bear to take care of your child (children) or dependent(s).
To understand all peculiarities about the topic, you shall check the Service’s official site and instructions. Sometimes they can change, so it is compulsory to read them before filing your forms.