Montana Dependent Care Assistance Credits
Extracted from PDF file 2020-montana-form-dcac.pdf, last modified July 2020
Dependent Care Assistance CreditsForm DCAC V1 6/2020 2020 Dependent Care Assistance Credits 15-30-2373 and 15-31-131, MCA Clear Form Name (as it appears on your Montana tax return) Social Security Number - - OR Federal Employer Identification Number - Part I. Partners in a partnership or shareholders of an S corporation Enter your portion of the dependent care assistance credit here. (See instructions) $___________________ Business Name of partnership or S corporation ___________________________________________________ Federal Employer Identification Number - Part II. Dependent Care Assistance Credit (15-30-2373 and 15-31-131, MCA) 1. Enter here the total amount of dependent care assistance that you furnished your employees 1. 2. Enter here the total number of employees who were provided this service 2. 3. Divide the amount on line 1 by the number on line 2 and enter that result or $6,300, whichever is smaller 3. 4. Multiply the amount on line 3 by 0.25 (25%) and enter that result or $1,575, whichever is smaller 4. 5. Multiply the amount on line 4 by the amount on line 2 and enter the result here. This is your dependent care assistance credit. 5. Part III. Dependent Care Information and Referral Services Credit (15-30-2373 and 15-31-131, MCA) 1. Enter here the total amount that you paid or incurred during the year for providing information and referral services to your employees 2. Multiply the amount on line 1 by 0.25 (25%) and enter the result here. This is your dependent care information and referral services credit. 1. 2. Part IV. Combined Credits 1. Add the amounts on Part II, line 5; and Part III, line 2. Your combined credit cannot exceed your tax liability. This is your combined dependent care assistance credit. Where to Report Your Credit ► Individuals: Form 2, Nonrefundable Credits Schedule ► C corporations: Form CIT, Schedule C 1. ► S corporations: Form PTE, Schedule II ► Partnerships: Form PTE, Schedule II If you file your Montana tax return electronically, you do not need to mail this form to us unless we ask you for a copy. When you file electronically, you represent that you have retained the required documents in your tax records and will provide them upon the department’s request. Form DCAC Instructions What information do I have to include with my tax return when I claim this credit? ● Individuals. If you are filing a paper return, include a copy of Form DCAC with your individual income tax return. ● C corporations. If you are filing a paper return, include a copy of Form DCAC with your corporate income tax return. ● S corporations and partnerships. If you are filing a paper return, include Form DCAC with your Montana information return Form PTE and include a separate statement identifying each owner and their share. You will need to complete a separate Form DCAC for each source you are receiving the credit from. For example, if you are a partner in one partnership that qualifies for this credit, and you, as an individual, also qualify for this credit, you would need to complete two forms. If you file electronically, you do not need to mail this form to us unless we contact you for a copy. Part I. Partners in a Partnership or Shareholders of an S Corporation If you received this credit from a partnership or S corporation, you will need to fill out Part I in its entirety. Your portion of the credit can be obtained from the Montana Schedule K-1 that you received from the entity. In addition to reporting your portion of the credit, you will need to provide the partnership’s or S corporation’s name and Federal Employer Identification Number. If you are a partner or shareholder in more than one partnership or S corporation, you will need to complete a separate Form DCAC for each entity you are receiving the credit from. Part II. Dependent Care Assistance Credit If you are an employer, you can take a credit against your tax liability for providing dependent care assistance. In order to qualify for this credit, the dependent care assistance you provide is required to be furnished by a registered or licensed day care provider, and it must be furnished according to a program that meets the requirements of 26 IRC 129(d) (2) through (6). You are not entitled to this credit if any of the following are true: ● The services were not performed in Montana; or ● The amount of dependent care assistance is paid according to a salary reduction plan; or ● The amount upon which the credit is based is included in the gross income of the employee or employees. If you are filing an individual income tax return, the deduction that is allowed for dependent care assistance on your federal Schedule C, E or F must be reduced by the amount of dependent care assistance used to determine your credit. If you are filing a partnership, S corporation or C corporation tax return, the deduction that is allowed for dependent care assistance (that reduces your federal taxable income) must be reduced by the amount of dependent care assistance used to determine your credit. Part III. Dependent Care Information and Referral Service Credit In addition to the dependent care assistance credit, as an employer you can also take a credit against your tax liability for providing information and referral services to assist your Montana employees in obtaining dependent care. The amount of your credit is equal to 25% (multiply by 0.25) of the amount that you paid or incurred during the year for providing dependent care information and referral services to your Montana employees. Part IV. Combined Credits If the credit exceeds my tax liability, can I carry any excess credit to another tax year? Yes. You can carry forward the unused portion of the dependent care assistance credit and the dependent care information referral service credit for up to five years. Questions? Call us at (406) 444-6900, or Montana Relay at 711 for the hearing impaired.
More about the Montana Form DCAC Individual Income Tax Tax Credit TY 2020
We last updated the Dependent Care Assistance Credits in April 2021, so this is the latest version of Form DCAC, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form DCAC directly from TaxFormFinder. You can print other Montana tax forms here.
Other Montana Individual Income Tax Forms:
|Form Code||Form Name|
|Form 2||Montana Individual Income Tax Return|
|Form IT Payment Voucher||Individual Income Tax Payment Voucher|
|Form 2 Instructions||Individual Income Tax Instructional Booklet|
|Form AMD (Obsolete)||Montana Individual Income Tax Amended Return Reconciliation|
|Form 2EC||Montana Elderly Homeowner/Renter Credit (OBSOLETE)|
Montana usually releases forms for the current tax year between January and April. We last updated Montana Form DCAC from the Department of Revenue in April 2021.
Form DCAC is a Montana Individual Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Montana Form DCAC
We have a total of ten past-year versions of Form DCAC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Montana Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.