Posted by Kristen on February 27, 2013
What is the Child and Dependent Care Credit?
- The Child and Dependent Care Credit is a nonrefundable tax credit available to qualifying individuals who have paid costs for child care or care for a dependent within the same year.
- The payments must be made to a care provider. This cannot include your spouse, other children, or any of your dependents that may be providing care.
- The total expenses that qualify for the credit are limited to $3,000 for one child or $6,000 for two of more children.
When and Where is the Child and Dependent Care Credit Used?
- If you paid for the care of your child, you can qualify for this credit. Children qualify if they are under the age of 13-years-old.
- If your spouse or other dependent is physically or mentally unable to take care of themselves, you may qualify for the cost of care.
- You will need to reduce the credit by any amount of dependent care benefits that are provided by your employer.
- You may only qualify for this credit if you are a custodial parent. Even if you are a noncustodial parent claiming an exemption for the child or children, you cannot qualify for this credit.
- You can only qualify for this credit if you paid for care while you or your spouse was working or looking for work.
Child Dependent Care Credit
More Tax Topics for Parents
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