Child Care Tax Credit and Dependent Care Credit
Do You Qualify For Child Care Tax Credit Or Dependent Care Credit?
You can reduce your tax debt if you qualify for the child care tax credit.
The federal government recognizes that caring for children or a dependent can be a financial burden, and may allow you a tax credit on your income tax debt.
If you have children or a dependent that you pay someone else to care for while you look for work or while you work, you probably qualify for this tax relief. This child and dependent care tax credit may result in a bigger tax refund!
How can I qualify for this tax credit?
Your child must be less than 13 years old. You must be paying someone else to care for them, this cannot be a spouse or a child of your own under 19 years of age. The person you pay must not be a dependent of yours. An after school or latch-key program may qualify, but regular school expenses are not allowed.
If you are caring for a spouse, or dependent person who cannot care for themselves, they can be any age. For instance, if you care for a disabled parent, or mentally or physically challenged child, they can qualify as long as they live with you for more than six months. You can claim up to 35% of their care expenses, up to $3,000 for one person or $6,000 for two or more.
You can apply for this child or dependent care credit if you are employed and file as a single, head of household, or married filing jointly. If you receive dependent or child care benefits form your employer, this amount will be figured into the formula.
Why wouldn’t I apply for the child tax credit?
There is no reason that I can think of, as long as your qualify. You should take advantage of the child care tax credit or dependent care credit. Why not take every legal advantage when you file your income tax. You may qualify for a tax refund, and this credit can help. If you are a parent or caring for a dependent person you deserve this tax break!
More on birthday gifts for her:
- Income Tax Relief for 2009, 2010 Times are tough. Jobs are scarce, money is tight....
- Free E-File Tax Return for 2009, 2010 You will be able to e-file for free if you...
- Income Tax Planning Software for 2009, 2010 To simplify your tax process whether it is for your...
- What is the AMT, Alternative Minimum Tax ? 2009, 2010 AMT stands for Alternative Minimum Tax. The Alternative Minimum Tax...
- Best Income Tax Preparation Software for 2009, 2010 There are thousands of tax preparation services available online that...