by admin

Child and Dependent Care Expenses

Now-a-days paying for a Child and Dependent care has become expensive! If you have paid someone to care for a child or dependent, so you could work, you may reduce your income tax by claiming the credit for child and dependent care expenses.

Who Qualify?

• Any Child who is a dependent and was under age 13 when the care was provided.
• A dependant age 13 or over, incapable of caring for themselves with disability.
• A person who wasn't physically or mentally able to care for himself or herself, lived with you for more than half the year, and either :
  • Was your dependent, or
  • Would have been your dependent except that :
    • He or she received gross income of $4,050 or more,
    • He or she filed a joint return, or
    • You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2017 return.

Benefits

The Credit is 20%-35% of the qualified expenses. The Maximum day care charges are $ 3000 for one dependant and $ 6000 for more than one dependant. The percentage of credit depends on your Adjusted Gross Income (AGI).

Your income plays a major role.

For example, If Income is less than $ 15000 qualify for full 35%. The percentage falls by 1% for every additional $ 2000 of income until it reaches 20% (for Income of $ 43000 or more).

You must reduce any child or dependant care benefits that were provided by employer that was deducted from Income.