Child and Dependent Care Credits

You may be able to claim a credit on this year's taxthe taxpayers to work or to look for work.
return if you paid someone to take care of yourUnfortunately, if you did not find a job and have no
dependent, who is under the age of 13 or for yourearned income during 2009 you cannot take the credit.
spouse or dependent who was not able to care forThe following is a partial list of qualifying expenses:
themselves while you worked. An example of a1. Day care for children
dependent that was unable to care for themself would2. Daytime dependent care center for adults
be a disabled spouse.3. Household services such as-cook, maid, babysitter,
The credit can be up to 35% of your expenses ascleaning person, housekeeper
defined. The maximum Dependent Care Credit for oneThe following is a partial list of types of expenses that
qualifying dependent is $1,050 and for two or moreare not allowed:
qualifying dependents is $2,100. In order to qualify you1. Kindergarten or a higher grade
must have paid the qualifying expenses so that you2. Cost of transportation for the caregiver
were able to work or able to look for work. To qualify3. Overnight camp
for the credit, you must also furnish more than half of4. Generally food, clothing, entertainment education
the cost of maintaining a home that is also the home5. Child support payments
of the qualifying person.Payments to Relatives - Payments to a relative may
Amount of Credit - The maximum amount ofqualify unless the taxpayer claims a dependency
employment related expenses to which the credit mayexemption for that relative, or if the relative is the
be applied is $3,000 for one qualifying individual and istaxpayer's child and is under the age of 19.
$6,000 if two or more qualifying individuals are involved.Claiming the Credit - Generally, a married taxpayer
The amount of the credit is equal to a percentage asmust file a joint return to claim the credit. There are
set forth in IRS table which is based on the taxpayer'sspecial rules for taxpayers who are not married. Also,
adjusted gross income times the amount of qualifieda divorced or legally separated taxpayer having child
employment expenses that were paid during 2009.custody who is disabled or under the age of 13 is
Taxpayers with adjusted gross income of $15,000 orentitled to the credit even if he or she released their
less can use the highest percentage which is equal torespective right to the dependency exemption for the
35%. For taxpayers with an adjusted gross incomechild. In order to claim the credit a taxpayer is required
over $15,000 the credit is reduced by one percentageto provide a Social Security number for each qualifying
point as defined. This tax credit is based on aindividual and Social Security number for each care
percentage of the qualifying expenses. Theprovider.
percentage ranges from 20% to 35% of the qualifyingSummary - Special rules exist for children of divorced
expenses.or separated parents, the treatment dependent care
Qualifying Expenses - Qualifying expenses maybenefits received,filing status, prior year carryovers, etc.
include those expenses paid for household servicesPlease refer to IRS Publication 501 for more
and for the care of a qualifying individual that enabledinformation.