Thursday, April 28, 2011

Child & Dependant Care Credit

What is it?
The Child and Dependent Care Credit is a federal tax credit for working families and individuals to cover child or dependent care .

Do I qualify?
You qualify if you pay for the care of a child 12 years or younger, or older individuals who are physically or mentally unable to care for themselves, if the child care allows you or your spouse to work, of look for work, and if you earned income (salaries, wages, tips, net income from self-employment).

Household Size                    Annual Income Limit
          2                                        $14,570
          3                                        $18,310
          4                                        $22,050
          5                                        $25,790
          6                                        $29,530
          7                                        $33,270
          8                                        $37,010
9 or more people                        $40,750

How do I apply?
To apply, you can fill out Form 2441 with IRS form 1040 or 1040A. You can also have your taxes done for free by a trained volunteer with Volunteer Income Tax Assistance (VITA).

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