What is Child and Dependent Care Credit?
It is a type of credit that help reduce the cost of expense for child care and dependent care.
Paying for childcare and dependent care can be expensive! Luckily, you may be able to claim the child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.
You may not take this credit if your filing status is married filing separately.
What is the amount of credit limit for child and dependent care?
The amount of credit is between 20 and 35 percent of your allowable expenses(the percentage is depend on your adjusted gross income). The maximum expense is $3,000 for the care of one qualifying individual or maximum of $6,000 for two or more qualifying individuals.
What is a qualifying individual?
A qualifying individual for the child and dependent care credit is:
• Your dependent qualifying child who is under age 13 when the care is provided,
• Your spouse who is physically or mentally incapable of self-care and lived with you for more than half of the year, or
• An individual who is physically or mentally incapable of self-care, lived with you for more than half of the year, and either: (i) is your dependent; or (ii) could have been your dependent except that he or she has gross income that equals or exceeds the exemption amount, or files a joint return, or you (or your spouse, if filing jointly) could have been claimed as a dependent on another taxpayer’s 2015 return.