| The cost of raising a child is elevating | | | | and dependent expenses. For example, if your |
| every day. Paying for baseball leagues, dance | | | | child needs after-school care because you |
| lessons, day care, clothing, food and school | | | | work until 6 p.m., you will fit in this |
| supplies can add up to be a large sum of | | | | category. Conditions that apply: |
| money. On the other hand, if you are caring | | | | |
| for a parent, a spouse or any other dependent | | | | - You must have earned income from wages, |
| that are physically or mentally incapable of | | | | salaries, and tips or other taxable employee |
| caring for themselves can also add up to be a | | | | compensation, or net earnings from |
| large sum of money. If you are in either one | | | | self-employment. If you are married, both you |
| of these categories, the IRS has a child and | | | | and your spouse must have earned income, |
| dependent care tax break for you to save | | | | unless one spouse was either a full-time |
| money on your income tax. | | | | student or was physically or mentally |
| | | | incapable of self-care. |
| According to the IRS website, this credit is | | | | |
| available to people who, in order to work or | | | | - The payments for care cannot be paid to |
| to look for work, have to pay for child care | | | | someone you can claim as your dependent on |
| services for dependents under age 13. The | | | | your return or to your child who is under age |
| credit is also available if you paid for care | | | | 19. |
| of a spouse or a dependent of any age that is | | | | |
| physically or mentally incapable of self | | | | - Your filing status must be single, head of |
| care. Many people do not know on how many | | | | household, qualifying widow(er) with a |
| different ways they can save money on their | | | | dependent child, or married filing jointly. |
| taxes, said Jayson French, a tax practitioner | | | | |
| for Palm Beach Tax Center. Child and | | | | - The care must have been provided for one or |
| Dependent Care Credit can be very helpful for | | | | more qualifying persons identified on the |
| parents that have to pay for daycare and | | | | form you use to claim the credit. |
| other work related expenditures. | | | | |
| | | | - You (and, if you are married, your spouse) |
| The tax credit is a percentage, based on your | | | | must maintain a home that you live in with |
| gross income will cover work related child | | | | the qualifying child or dependent. |