Dependent Care Credit 1. What is a Tax Credit Credits are designed to offset tax liability...
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Transcript of Dependent Care Credit 1. What is a Tax Credit Credits are designed to offset tax liability...
Dependent Care Credit
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What is a Tax Credit• Credits are designed to offset tax liability• Refundable credits• Nonrefundable credits• Dependent Care Credit is nonrefundable
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Rules• Qualifying Child Rules
o Child must be under the age of 13 o Must be a qualifying childo Age rule does not apply if the person is mentally or
physically incapable of self-careo Child must live with the taxpayer for more than half of
the year.
• Expense Ruleso Expenses incurred while parent is working or looking for
worko School expenses are not eligibleo Summer day camp qualifies, no over night camps
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More Rules• No MFS filing status• Must have earned income• Must have the care providers address, name, and
tax ID number/SSN
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TaxWiseMain Info Page
• Check the box for DC o DC – Dependent Care Credito Automatically adds form 2441 to tax return
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TaxWiseForm 2441
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TaxWiseForm 2441 Continued
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