Child and Dependent Care Credit
You may be able to claim the child and dependent care credit if you paid expenses for the care of a loved one. You may not take this credit if your filing status is married filing separately.
First of all, the total expenses used to calculate the credit may not be more than $3,000 (for one child) or $6,000 (for two or more children).
A qualifying individual for the child and dependent care credit is:
- Your dependent qualifying child who is under age 13 when the care is provided
- Also, your spouse who is not capable of self-care and lived with you for more than half of the year
- Finally, other dependents who are not capable of self-care, lived with you for more than half of the year while dependent upon you for more than half of their financial support.
You must identify all persons or organizations that provide care for your child or dependent. Consequently, you must report the name, address, and TIN of the care provider on your return. TIN is either a social security number or an employer identification number. If the care provider is a tax-exempt organization, you need only report the name and address of the organization on your return.
Payments to Relatives or Dependents – Most noteworthy, the care provider can’t be:
- Your spouse
- The parent of your child if your qualifying individual is your child and under age 13
- Your child who is under the age of 19
- Or a dependent for whom you or your spouse may claim on your return.
In conclusion, the Child and Dependent Care Credit is a great assistance for working families. Most of all to the middle class and lower-income families. Should you have any questions, feel free to give us a call at 404-600-1040 or visit our contact page.