If you pay for childcare and are employed you may qualify for the Child Care Credit.
If you have paid for someone else to take care of your child or dependent this past year you may qualify to claim a Child Care Tax Credit on your Federal Income Tax Return.
What you need to ask, to see if you can claim the credit:
What are qualifying services that I can get the credit for?
You are eligible for the credit if you use a day care or day camp service. Though overnight camps do not qualify for the Child Care Credit. You must use the care to either go to regular employment or to search for regular employment. The Child Care Credit is available to people who file with a status of Single or Jointly. If you do file jointly you and your spouse must either both work and be seeking work, however you can claim it if one is a full time student.
Am I eligible for any care for any child?
Any dependent child is eligible for the credit up to the age of 12 years. If the dependent or child is older than 12 they must be unable to take care of themselves. The qualifying child must live with you at least half of the year. If you had an event such as a birth, death, divorce, or separation this may affect the requirements.
Who can provide qualified care?
Care can be provided in home by a nanny or baby sitter and qualify. Care that is provided by your spouse or the parent of the child does not qualify for the credit. Care provided by another dependent child or another child that is not a dependent and under the age of 19 is not eligible.
How much can I save?
You can claim as much as $3,000 for one child or $6,000 for two or more children who are provided qualifying child care. The tax credit and vary based on your childcare expenses, generally 20% to 30%. Things such as your adjusted gross income and any assistance provided by your employer and affect the amount of the credit.
How to file for the credit:
You must include Form 2441, Child and Dependent care Expenses with your Federal Tax Return. You need to provide information such as name, address, social security number or employer identification number of the party providing the care.
