My Open Book

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 tax 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 this 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!

You can use the Free Tax Calculator provided by Turbo Tax Online to estimate your Child Care or Dependent Care Tax Credit.

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