What is the Dependent care credit?
The dependent care credit is a federal tax credit that allows eligible taxpayers to claim 20% to 35% of qualifying childcare expenses, with the credit percentage based on adjusted gross income levels. This credit applies to expenses for children under age 13 that enable parents to work, look for work, or attend school full-time. Maximum annual credit limits are $3,000 in expenses for one child or $6,000 for two or more children. Qualifying expenses include daycare centers, babysitters, after-school programs, and summer day camps. The credit directly reduces tax liability dollar for dollar and coordinates with Health savings account strategies for comprehensive family tax planning opportunities.
Easily save clients thousands in taxes.
Scan client returns.
Uncover savings.
Export a professional tax plan.
.png){kind=small}