Traverse City, MI - Taxpayers looking for some relief as regards their child care expenses should look no further than the Child and Dependent Care Credit. The credit involves a variety of things, but the main reason to claim this credit is to cover the cost of childcare. In a recent post, Internet Tax Connection details the rules revolving around this tax credit and how much it’s worth.
There are only a few basic conditions to be met in order to qualify for the Child and Dependent Care Credit. One important condition is the Age Limit. The child must be 13 years or younger at the end of the year to be eligible for the credit. The credit can also be claimed on adults older than 13 years as long as they are unable to care for themselves and must have stayed at home for at least six months of the year.
Another condition is the Child Care Credit Income Limit, and it helps determine the amount of child care credit that can be claimed by taxpayers. When compared to other tax credits, the child care credit has no maximum income ceiling cap. However, the more taxpayers earn, the lesser they will get. The lowest earners will be able to claim back 35% of their total expenses, minus any employer-provided benefits. While those at the higher end of the spectrum will be able to get 20% of their total childcare cost after deducting employer-provided benefits.
Taxpayers who would like to calculate how much the child care credit will be worth to them can use the Child Care Credit Calculator. The handy calculator will help to find out how much they may be entitled to in seconds. All they need provide is some relevant information about their financial affairs. They can then go ahead and file their taxes with TurboTax.
For more information about the Child Care Tax credit, please read the original post on Internet Tax Connection here - https://internettaxconnection.com/what-is-child-dependent-care-credit
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Internet Tax Connection
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Traverse City, Michigan 49686
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