You may take the credit equal to 25% of the first $1,000 of qualifying expenses paid in 2012 for each dependent from the ages of three through five. Just enter the amount of your expenses, and we will calculate the amount of the credit.

Expenses that qualify include the following:

• Services provided by a preschool, as defined in Code Section 237A.1
• Books that improve child development, such as textbooks, music and art books, teacher's editions, and reading books
• Instructional materials required to be used in a lesson activity, such as paper, notebooks, pencils, and art supplies
• Lesson plans and curricula
• Child development and educational activities outside the home, such as drama, art, music, and museum activities, and the entrance fees for such activities

Early childhood development expenses that do NOT qualify include:

• Food, lodging, or membership fees relating to child development and educational activities outside the home
• Services, materials, or activities for the teaching of religious tenets, doctrines, or worship, if the purpose of these expenses is to instill those tenants doctrines or worship

Married Separate Filers: If you and your spouse are filing separate returns, only report expenses for children you can claim as a dependent on your return. If your spouse is claiming the dependent on their return, you can't claim the credit for that child, even if you paid the expenses. When we compute the credit, we'll use both your and your spouse's income, even though you're filing separately.