If you’re paying for care while you work, the Child and Dependent Care Credit may help. Learn how this credit can offset your care costs and reduce your tax bill by hundreds or even thousands of dollars.
A dependent who’s a qualifying child and under age 13 when you pay for the care (This age limit does not apply for a child who is disabled). Usually, you must be able to claim the child as a dependent to receive the credit. However, an exception applies for children of divorced or...
The “work-related” qualifier is key. Paying for babysitting or child care expenses to take a vacation, for example, wouldn’t be considered a qualifying expense. There’s no income limit to be eligible for the credit. Also, the credit isn’t refundable. That means it can reduce your ta...
Taxpayers may be able to claim thechild and dependent care creditif they paid expenses for the care of a qualifying individual to work or actively look for work. The amount received is a percentage of the work-related expenses paid to a provider for the care of a qualifying individual, and...
the dependent must be under the age of 13, unless the individual is permanently or totally disabled. Ifparents are divorced, the custodial parent is the one eligible to take the child and dependent care credit, whether or not the noncustodial parent claims the child as a dependent on their ...
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The maximum income threshold was changed significantly. For Tax Year 2021, single taxpayers were eligible for the full credit if their adjusted gross income (AGI) was at or below $75,000 or $150,000 for married filing jointly. Additionally, the limit for the phaseout was $112,000 for head...