Child
Care Credit One piece of tax information that many parents forget to bring us each year
for preparation of their tax return is childcare information. If you paid for someone to care for a dependent
age 12 or younger or a disabled dependent or spouse while you worked or looked
for work, you may be able to claim the Child and Dependent Care Credit on your
tax return. This article examines the
requirements for claiming the credit as well as the amounts you are
allowed to take as a credit on your tax return.
You will qualify for the credit if you: In order to claim the
credit, you must maintain as your principal home a
household for at least one of the following qualifying persons who live
with you: The following qualifying
expenses (maximum $3,000 for one dependent, $6,000 for more than one) must
be reduced by any tax free reimbursements that you receive from your
employer: costs of
caring for your dependent under age 13, incapacitated spouse, or
incapacitated dependent in your home; ordinary
domestic services in your home, such as cooking, cleaning, and laundry
that are partly for the care of the qualifying person; out-of-the-home
care costs for a child under age 13 in a day care center, day camp,
nursery school, or in the home of a baby sitter. These costs also
qualify for the credit if they are for a
handicapped dependent, regardless of age, if he/she spends at least
eight (8) hours per day in your home. Each child for whom the
credit is claimed must have a Social Security or Taxpayer
Identification Number. Special
tax rules apply if your spouse is a student, is incapable of
caring for himself or herself, for separations, and for payments to
relatives. Employment-related expenses
that qualify for the credit include household
services and expenses for care of the qualifying individual. Expenses of
attending a daytime summer camp qualify for the credit if that is a reasonable means of providing care during working
hours. Overnight camp expenses do not qualify. A nursery school generally qualifies for the
credit, but an elementary school does not. The credit is allowed for $3,000 of expenses for one dependent's care and
$6,000 for more than one dependent's care. See the table below to
determine your Child and Dependent Care Credit. |
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