Child and Dependent Care Credit can help you save on your taxes

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