Page 7

2021 Phaseout Schedule

If line 7 is: Over: But not over: The decimal amount to enter on line 8 is: If line 7 is: Over: But not over: The decimal amount to enter on line 8 is: $0 – $125,000 .50 $175,000 – $177,000 .24 125,000 – 127,000 .49 177,000 – 179,000 .23 127,000 – 129,000 .48 179,000 – 181,000 .22 129,000 – 131,000 .47 181,000 – 183,000 .21 131,000 – 133,000 .46 183,000 – 400,000 .20 133,000 – 135,000 .45 400,000 – 402,000 .19 135,000 – 137,000 .44 402,000 – 404,000 .18 137,000 – 139,000 .43 404,000 – 406,000 .17 139,000 – 141,000 .42 406,000 – 408,000 .16 141,000 – 143,000 .41 408,000 – 410,000 .15 143,000 – 145,000 .40 410,000 –

412,000 .14 145,000 – 147,000 .39 412,000 – 414,000 .13 147,000 – 149,000 .38 414,000 – 416,000 .12 149,000 – 151,000 .37 416,000 – 418,000 .11 151,000 – 153,000 .36 418,000 – 420,000 .10 153,000 – 155,000 .35 420,000 – 422,000 .09 155,000 – 157,000 .34 422,000 – 424,000 .08 157,000 – 159,000 .33 424,000 – 426,000 .07 159,000 – 161,000 .32 426,000 – 428,000 .06 161,000 – 163,000 .31 428,000 – 430,000 .05 163,000 – 165,000 .30 430,000 – 432,000 .04 165,000 – 167,000 .29 432,000 – 434,000 .03 167,000 – 169,000 .28 434,000 – 436,000 .02 169,000 – 171,000 .27 436,000 – 438,000 .01 171,000 – 173,000 .26 438,000 – No limit .00 173,000 – 175,000 .25 Line 9b If you had qualified expenses for 2020 that you didn't pay until 2021 and you didn't claim a credit on the maximum amount of qualified expenses for 2020, you may be able to increase the amount of the credit you can take in 2021. To figure the credit, complete Worksheet A at the end of these instructions. Enter on line 9b the amount from line 13 of Worksheet A. The amount on line 9b is a refundable credit for 2021 if you checked the box on line B. Example. In 2020, Kate had childcare expenses of $2,600 for her 12-year-old child. Of the $2,600, she paid $2,000 in 2020 and $600 in 2021. Kate will use Worksheet A to figure her credit on the 2020 expenses paid in 2021. The credit for these expenses will be entered on her 2021 Form 2441, line 9b. Line 10 Add lines 9a and 9b and enter the result on line 10. If you checked the box on line B, this is your refundable credit for child and dependent care expenses; enter the amount from this line on Schedule 3 (Form 1040), line 13g, and don’t complete line 11. If you didn’t check the box on line B, go to line 11. Line 11 Only complete line 11 if you did not check the box on line B. If you checked the box on line B, leave line 11 blank. If you didn’t check the box on line B, your credit is nonrefundable and limited by the amount of your tax. You may not enter on Schedule 3 (Form 1040), line 13g, the amount from line 10. Instead, you must complete the Credit Limit Worksheet next to figure the amount to enter on line 11. The nonrefundable credit on line 11 is reported on Schedule 3 (Form 1040), line 2. Credit Limit Worksheet 1. Enter the amount from Form 2441, line 10 . . . . . . . 1. 2. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18 . . . . . . . . . . . . . . . . . . . . . . 2. 3. Enter the amount from Schedule 3 (Form 1040), line 1 (foreign tax credit) and line 6l (Form 8978, line 14) . . 3. 4. Subtract line 3 from line 2. If zero or less, stop; you can’t take the credit . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Enter the smaller of line 1 or line 4 here; also enter this amount on Form 2441, line 11, and on Schedule 3 (Form 1040), line 2 . . . . . . . . . . . . . . . . . . . . 5. CAUTION ! Instructions for Form 2441 (2021) -7-