How To File for the Child Care Credit

Every year there are people who are entitled to receive the child care credit, but miss out or do not qualify due to lack of understanding.  People should know how to file for the child care credit.  One very important step is to make sure that you know how much you paid in child care expenses to your provider.

Many people filing for the child care credit only think of daycare.  You can also include what you paid for nursery school, kindergarten, day camp, and after school activities and care.  If you have someone in your home providing care, expenses from meals and housing can be considered.

No child care money can be paid to your own child unless they are over the age of 18.  Cost can't be considered if paid to a dependant or spouse.  If more than one person qualifies for the child care credit, you will want to separate expenses for each individual person.  When it comes down to the time you are going to file for the child care credit, filling out the paperwork in the correct manner is vital. You must have your care provider's name, address, social security number or EIN, and the amount you paid.  If left out, you will not qualify.  When adding the names of your qualifying dependants, you must have their social security number as well.

You are only allowed to have a total of $2,400 per qualifying person.  For multiple people the total can't exceed $4, 800.  This credit is based on your earned income, and not investments. Do not include both within the total.  Make sure your spouse's income is added as well to make it a total household income.

When you file for the child care credit, you can also enter other dependants such as a disabled spouse, or a spouse who is a full-time student.  You will put $2,400 as earned income if one person qualifies, or $4,800 if you have two or more.

You will determine that care expenses were paid for at least one person under the age of 13, or physically and mentally unable to care for themselves.  If you can't verify a person as your dependant, verify the person would be your dependant, but their income is too high.  They may not be your dependant due to a divorce or separation agreement.  Don't forget to verify if the dependant person is your spouse.