Millions of families find that they need two wage-earners in order to buy a home, pay the rent, go on vacations or simply, maintain the family budget. In most communities, two-working-parent families are the norm in American Society.
Day Care is a necessity, now more than ever, especially since many grandparents find themselves working past the ages of 65 and 70 and no longer available to help out. Families know all too well what a costly expense day care can be. Not to fret though … there is some relief. Your childcare costs may actually help you qualify for a tax credit!
Say again, you’re asking? The Child and Dependent Care Credit is available for child-care expenses incurred during the summer break, and even throughout the rest of the year. Here are some facts, so you don’t miss out.
• Who qualifies and just for how much?
If you pay someone to care for your qualifying child (under the age of 13) or your disabled spouse or dependent, you may qualify for a credit of up to 35 percent of your expenses.
The credit directly reduces your taxes and is available for certain child and dependent care expenses. Depending on your adjusted gross income (AGI), the credit may be as much as $1,050 for one qualifying individual and $2,100 for more than one.
• If you use an at-home childcare provider, can you still qualify?
The answer is most definitely. It doesn’t matter if you use a daycare facility outside of your home or a sitter that comes to you. You'll get some tax benefit if you qualify for the credit.
Give us a call if you have further questions. We’ll be happy to assist you getting everything you deserve at tax time!
