Tax Credit for Child and Dependent Care Expenses

by | Nov 14, 2018 | Top Accounting Tutorials | 0 comments

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Tax Credit for Child and Dependent Care Expenses

Important: Starting with Tax Year 2018 (Jan. – Dec. 2018), the Child and Dependent Care Credit requirements are changing due to Tax Reform. Our CAREucator tax tool is currently for Tax Year 2017, but you may use it now to get an idea of your 2018 Taxes. We will update the tool and this page as the IRS finalizes the Child and Dependent Care Credit requirements. Tax Reform and you? Let efile.com help you and become eligible to Tax Win. Find out now.

Important: Starting with Tax Year 2018 (Jan. – Dec. 2018), the Child and Dependent Care Credit requirements are changing due to Tax Reform. Our CAREucator tax tool is currently for Tax Year 2017, but you may use it now to get an idea of your 2018 Taxes. We will update the tool and this page as the IRS finalizes the Child and Dependent Care Credit requirements. Tax Reform and you? Let efile.com help you and become eligible to Tax Win. Find out now.

Can I claim the Care Credit?

Can I claim the Care Credit?

Paying for childcare and dependent care can be very expensive! Fortunately, there is a tax credit to help defray the costs. If you had to pay someone to care for your child, dependent, or spouse so you could work, look for work, go to school, or because of a disability, then the Child and Dependent Care Credit may be for you.

Paying for childcare and dependent care can be very expensive! Fortunately, there is a tax credit to help defray the costs. If you had to pay someone to care for your child, dependent, or spouse so you could work, look for work, go to school, or because of a disability, then the Child and Dependent Care Credit may be for you.

TaxTip: The cost of sending kids to day camp in the summer counts toward the Child and Dependent Care Credit. Overnight camps don’t count.

TaxTip: The cost of sending kids to day camp in the summer counts toward the Child and Dependent Care Credit. Overnight camps don’t count.

You will generally qualify for the Child and Dependent Care Credit if you meet all of the following conditions:

You will generally qualify for the Child and Dependent Care Credit if you meet all of the following conditions:

Start the “CAREucator”
(Child and Dependent Care Tax Credit)

Start the “CAREucator”
(Child and Dependent Care Tax Credit)

Was the care for one or more IRS qualifying persons?

Was the care for one or more IRS qualifying persons?

Did you have earned income during the year?

Did you have earned income during the year?

Did you pay the expenses to allow you to work or to look for work?

Did you pay the expenses to allow you to work or to look for work?

Were your payments made to someone you or your spouse could claim as a dependent?

Were your payments made to someone you or your spouse could claim as a dependent?

Were your payments made to your spouse or to the parent of your IRS qualifying child who is under age 13?

Were your payments made to your spouse or to the parent of your IRS qualifying child who is under age 13?

Were your payments made to your child who was under age 19 as of 12/31 of the tax year?

Were your payments made to your child who was under age 19 as of 12/31 of the tax year?

Are you single?

Are you single?

Are you filing a joint return with your spouse?

Are you filing a joint return with your spouse?

Do you meet the requirements to be considered unmarried?

Do you meet the requirements to be considered unmarried?

Do you know the care provider’s name, address, and identifying number?

Do you know the care provider’s name, address, and identifying number?

Did you make a reasonable effort to get this information?

Did you make a reasonable effort to get this information?

Did you pay expenses for more than one qualifying person?

Did you pay expenses for more than one qualifying person?

Are you excluding or deducting at least $3,000 of dependent care benefits?

Are you excluding or deducting at least $3,000 of dependent care benefits?

No. According to your answers, you do not qualify for the Child and Dependent Care Credit. But you might qualify for other tax credits and deductions for raising children.

No. According to your answers, you do not qualify for the Child and Dependent Care Credit. But you might qualify for other tax credits and deductions for raising children.

When you prepare your tax return on efile.com, we will identify and calculate every credit available to you.

When you prepare your tax return on efile.com, we will identify and calculate every credit available to you.

Email me my CAREucator results now
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Email me my CAREucator results now
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Based on your answers, you may be able to claim the Child and Dependent Care Credit.

Based on your answers, you may be able to claim the Child and Dependent Care Credit.

Email me my CAREucator results now
Start Over

Email me my CAREucator results now
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A Qualifying Person for the Child and Dependent Care Credit can be either of the following:

A Qualifying Person for the Child and Dependent Care Credit can be either of the following:

In addition, the Qualifying Person must have lived with you for more than half of the year. There are exceptions for a Qualifying Person who was born or died during the year, and for a child of divorced or separated parents.

In addition, the Qualifying Person must have lived with you for more than half of the year. There are exceptions for a Qualifying Person who was born or died during the year, and for a child of divorced or separated parents.

Learn more in Publication 503 – Child and Dependent Care Expenses

Learn more in Publication 503 – Child and Dependent Care Expenses

Efile.com makes it easy for you to claim the Child and Dependent Care Credit on your tax return. We will pick out this form for you and help you fill it in. Your completed return will then include the Form 2441 efile it, Child and Dependent Care Expenses.

Efile.com makes it easy for you to claim the Child and Dependent Care Credit on your tax return. We will pick out this form for you and help you fill it in. Your completed return will then include the Form 2441 efile it, Child and Dependent Care Expenses.

When you provide the information for the credit you must include the Social Security Number (SSN) of each qualifying person in order to claim the credit, as well as the name, address, and taxpayer identification number of your child or dependent care provider.

When you provide the information for the credit you must include the Social Security Number (SSN) of each qualifying person in order to claim the credit, as well as the name, address, and taxpayer identification number of your child or dependent care provider.

A Qualifying Person for the Child and Dependent Care Credit may only be claimed on one tax return. If a dependent is claimed on more than one tax return (for example, a child is claimed by both divorced parents) the IRS will apply a set of tiebreaker rules to see who gets to claim the dependent.

A Qualifying Person for the Child and Dependent Care Credit may only be claimed on one tax return. If a dependent is claimed on more than one tax return (for example, a child is claimed by both divorced parents) the IRS will apply a set of tiebreaker rules to see who gets to claim the dependent.

Learn about the dependent tiebreaker rules and who gets to claim a child as a dependent

Learn about the dependent tiebreaker rules and who gets to claim a child as a dependent

See what other tax credits and tax deductions may be available to you.

See what other tax credits and tax deductions may be available to you.

Research & References of Tax Credit for Child and Dependent Care Expenses|A&C Accounting And Tax Services
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