Search for:. File with confidence and accuracy - Canada's 1 Tax Software. Start for Free Pay only when you file Start for Free. Pay only when you file. If there is money left over after it is applied to your outstanding balance, it will be refunded to you. Because of the amount of money you could potentially receive from this credit, the IRS requires taxpayers to fulfill the criteria in order to claim it legally on their taxes.
Your tax return will be reviewed thoroughly to ensure you are using the tax credit as it is intended. The IRS has implemented several stringent requirements in order for taxpayers to be able to claim the child and dependent care tax credit. First, you can only claim child care expenses that you are paying while you are at work. You cannot deduct those that you pay for a night out on the town, for example.
You can also cannot deduct costs associated with hiring a personal assistant or a nanny. The expenses have to be paid directly because of you are working and unable to care for your children yourself during that time. You can claim the child care tax credit if you hire a family member to take care of your children or dependents. The family member must:. Further, the child care credit can only be used if you are paying child care expenses for children under the age of You can claim the credit until your child's 13th birthday.
Before you claim the child care tax credit on your tax return, it is critical that you understand its purpose and the requirements for legally deducting it from your taxes.
Jill Stimson has worked in various property management positions in Maryland and Delaware. Stimson worked for the top three property management companies in the commercial industry and focuses her career on property building logistics and tenant relationships.
She holds a Juris Doctor and a Bachelor of Science in psychology. Share It. Accessed April 27, Internal Revenue Service. Check with your state of residence to determine whether the state offers its own version of the credit and how to report it on your state return. With a background in taxation and financial consulting, Alia Nikolakopulos has over a decade of experience resolving tax and finance issues.
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. These returns cover a period from and were examined and attested by Baker Tilly, an independent accounting firm.
0コメント