Child Care Tax Credit Information
If you have provided a babysitter, summer camp, or other necessary stuff needed for a care to a daycare center for a qualifying child of age under 13 or disabled dependent of any age then you can be eligible for a tax credit up to 35% of qualifying expenses.
Child Care Tax Credit Helpful Links
You can also get all the information regarding federal child care tax credits for parents from the following:
- Internal Revenue Service by calling them at (800) TAX-1040 or (800) 829-1040
- Tax Information for Parents:
- Child and Dependent Care Tax Credit
- Child Tax Credit
- Earned Income Tax Credit
- Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents?
The total credit amount changes according to the total income of the family and its size. And it also depends on the maximum income or child care spending limitations. You can check your eligibility by consulting your tax advisor, the IRS, or state revenue officials.
If you have provided a babysitter, summer camp, or other necessary stuff needed for a care to a daycare center for a qualifying child of age under 13 or disabled dependent of any age then you are eligible for a tax credit of:
Under current federal law, eligible families can claim child care tax credits* up to:
- The tax credit from the federal Child and Dependent Care is of $2,100. $1,050 is for your first two kids, each but the amount is charged according to your income and expenses of your child.
- An amount of $2,000 for every child from the federal Child Tax Credit.
- The federal Earned Income Tax Credit is responsible for paying an amount of $6,660 and it also depend upon the total income of the family.
Purpose of the child and dependent care credit
The main purpose of child and dependent care credit is to help the parents and guardians in upbringing a child or disabled dependent by providing some expenses. Its credit,
- Changes and depends on the income of taxpayers.
- Depends upon the expenses paid for providing the services of child and dependent people so that their parents can work easily.
- Lessen the federal income taxes but it enhances your funds, directly. This amount can be use for the expenses used in raising a child.
The parents who pay the cost of childcare can also get a tax break from the child and dependent care credit. As the credit goes towards the working parents and guardians, so taxpayers who were the full-time students or remained unemployed for part of the year may also qualify.
If you have provided a babysitter, summer camp, or other necessary stuff needed for a care to a daycare center for a qualifying child of age under 13 or disabled dependent of any age then you can qualify for a tax credit of:
There is a special criterion set for the child and dependent care credit. For this, you have to fulfill all of these conditions:
- You with or without your spouse must make the amount for the tax year.
- You must be a main caretaker or a custodial parent of the child or dependent.
- The service provided to child or dependent must have been used so you could easily manage your own work.
- You must be a single, head of household, qualifying widow or widower with a qualifying child, or married filing jointly.
- Child should not be of more than 13 age and the dependent must be physically or mentally incapable of caring for themselves.
- The childcare provider must be another person rather than your spouse or dependent or the child’s parent.
Qualifying expenses for the child and dependent care credit
The child and dependent care credit depend upon your daycare fees but IRS considers many other factors such as;
- Care provided to child by a babysitter or licensed dependent care center.
- The pay of all the person who provide care for the child or dependent, these are cook, housekeeper, maid, or cleaning person.
- The fees for summer and day camps. The overnight camps are not included.
- Cost required for before- and after-school care for children under 13.
- Cost for a nurse, home care provider, or other care provider for a disabled dependent.
The qualifying expenses does not include the expenses used for schooling, tutoring, or overnight camps.