Child Care Tax Credits - Understanding The Maze!

Did you know you can get multiple tax breaks forof one of your dependents to give you the ability to
having a child? Child care is just one of many taxwork. Claiming this money against your income
credits you qualify for when you are the parent of areduces your federal income, which will qualify you
minor. You should think about child care tax credits allfor more returns of your taxes. This applies to any
throughout the year, not just at tax time. You couldchild under the age of thirteen. They, of course, have
save a bundle on your taxes because of child careto be your dependent. You will receive a credit based
taxes. Many parents forget about their tax rights andon a percentage of the overall cost of the child care
these items go unclaimed.you are claiming. If your employer gives you a
The first child care credit you should claim is the childbenefit to cover the cost of child care, this will be
tax credit. Just about everyone qualifies for this taxsubtracted from the amount of your total cost for
credit. If the income you have after adjustments ischild care that you claim on your tax return.
over $75,000 for a single filer or $110,000 for aThe final tax credit not all taxpayers will qualify for. It
married couple, you will not qualify for this credit. Thisis only for those who are in the lower income
is a one thousand dollar credit that you will receivebrackets. This is the Earned Income Tax Credit. This
for each child you are responsible for. This does notis a credit that is best calculated by your tax
just apply to your immediate children. If you are theprofessional, because the upper income limit varies
caregiver for a grandchild, step child, or even anfrom year to year and sometimes with enough
adopted child, you could qualify for the child taxdeductions, you will qualify even if you do not think
credit. To determine whether or not you qualify, first,that you will. This is a large credit and is designed to
consider if the child is your dependent. Then, considerhelp improve the standard of living for those in the
whether or not you provide over half of their childlower income tax brackets.
car expenses, including food, clothing and otherTaking advantage of the three major credits you can
expenses. Finally, if the child will be sixteen at the endreceive for your dependents makes your income tax
of the tax year and no one else claims the child onreturn much more exciting. Be sure to talk to your
their taxes, you qualify for the one thousand dollartax preparation professional about the tax credits
credit.you qualify for. Children are expensive and you might
Next, consider the depended and child care tax credit.as well get the credits that are deserved you!
This is a credit for any money you paid for child care