Child And Dependent Care Credit
Categories: Tax, Econ, Regulations
Brace yourself for excitement: this is a tax term. The child and dependent care credit gives caregivers a chance to claim expenses for a qualifying dependent minor child (someone under 13) or a disabled adult dependent. “Qualifying” in this context means the dependent is either a minor or can’t care for themselves, has lived with the claiming caregiver for over half the year, and isn’t claimed on a different tax return.
Under the credit, the caregiver can claim expenses up to 35% of an amount up to $3,000 for one dependent or $6,000 for two. The exact percentage the caregiver can claim depends on their income. Say you fall into a bracket that allows you to claim 20%. You could claim 20% of the $3,000, or $600. It’s not much as far as care expenses go, but it’s the government...take what credit you can get.
