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Get a tax credit for child care expenses Do you pay for child care so you can work? If you do, don't overlook the child and dependent care credit, which directly offsets the taxes you owe. Claim the credit for preteens and other dependents. This credit allows you to offset some of the expenses you incur so that you can be gainfully employed. As the name implies, the credit doesn't apply just to children. You can claim expenses for any dependent under age 13 or for any other dependent who is incapable of caring for himself. For example, dependent care expenses paid for an aged parent or a handicapped spouse could qualify for the credit. For 2004 returns, the maximum credit ranges from 20% to 30%, depending on your income. You can claim the credit for up to $3,000 of expenses paid for one qualifying individual and up to $6,000 paid for two or more. In other words, the maximum credit could be as high as $2,100 for two dependents' care. This credit is well worth claiming, but the rules can be complicated. If you have questions about this credit or would like assistance with preparing your tax return, please contact our office. If you have questions or need assistance with filing an extension, call us at (703) 370-0019 or email at kahncpa@kahncpa.com. We are here to help. |
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