Paying for care for your child or disable loved on so that you can work? Uncle Sam wants to help…
If you’ve been paying for someone to take care of your child or a disabled loved one while you work, you might qualify for a federal tax credit. The Federal Tax Credit for Child and Dependent Care Expenses is designed to help people like you cover the costs of outside care for children and certain dependent adults.
To qualify, the person must have lived with you for more than half of 2011, be a child age 12 or younger, or, be an adult who is physically or mentally unable to care for themselves. In addition, you – or your spouse if filing jointly – must have earned income during the year and/or been a full-time student, and the care must have been provided by someone who is not your spouse or a dependent.
If your child or loved one qualifies for the credit, you could claim up to $3,000 of expenses paid for one person or up to $6,000 for two or more individuals.
With the cost of care what it is today, a credit like this can go a long way towards easing the financial burden. If you think you might qualify, give us a call we’ll see what we can help you save!