| For parents of children 12 and under, the child care tax | | | | information will be reported on your 2441 form so that |
| deduction can be a life saver to working parents. | | | | you can claim the Child and Dependent Care Tax |
| Parents should become familiar with the tax | | | | Credit. |
| information regarding the child care tax deduction. If | | | | Parents have other deductions that they can claim on |
| they aren't sure what to do, there are many tax | | | | their taxes online or on paper. There is the Child Tax |
| professionals which can offer tax advice on how to | | | | Credit, which can be up to $1,000 per qualified child. A |
| claim this deduction. All of this can help them when it | | | | child qualifies if the child's living expenses are paid by |
| comes time to file taxes online. | | | | the parent for more then one half of the year and the |
| The first thing a parent has to know is the criteria for | | | | child is not being claimed by anyone else. The child |
| the child care deduction. The criteria are as follows: | | | | must also be 16 or younger by the end of the year to |
| -- The child must be 12 years old or younger. If the | | | | qualify as a dependent. |
| child is 13 or older, you must show that the child is | | | | Another deduction for parents is the Earned Income |
| either physically and/or mentally unable to care for | | | | Tax Credit. It was designed to help lower income |
| themselves. If the child is 13 and up and is mentally or | | | | families with their day to day expenses. If you need |
| physically disabled, you may also deduct adult daycare | | | | tax advice on how to claim this credit, you can check |
| expenses. | | | | out the IRS website or contact a tax professional. |
| --You must provide a home for the child or adult | | | | Checking yearly for changes in tax laws is always a |
| dependent by paying over half the expenses for the | | | | good thing to start with, as there may be new |
| maintenance of the home for the dependent. You can | | | | deductions to help struggling families with their taxes. |
| not deduct child care or dependent care for a person | | | | Many people opt to buy tax preparation software to |
| that does not live with you. The childcare provider you | | | | help them file their taxes. The programs walk the |
| employ can not be another dependent. This means | | | | taxpayer through the filing process, asking them |
| that if your older children watch your younger children, | | | | questions and using their answers to determine what |
| this can be not be used for the child care deduction | | | | they qualify for. If you are unfamiliar with how best to |
| unless they are 19 years old or over and no longer | | | | fill out your taxes, it might be worth buying one of |
| qualify as a dependent. | | | | these programs. They typically come with an option |
| --Your child care provider has to give you their name | | | | that all you to file taxes online right through the |
| or business name if there is one, an address, and a | | | | program. This can make the tax process much easier |
| Social Security or Employer Identification Number. This | | | | and can provide the taxpayer with additional savings. |