We are over the $110K limit to claim the standard deduction, but I am in a dilemna of switching from my non licensed day care provider to a licensed one and am wondering if the tax credit we would get would be significant?
I looked on irs.gov, but wasnt sure. I do know that if our joint return's AGI is over $110K (which it is) then we only get a reduced amount. Does anyone know how to calc so I could take this into consideration for switching???????
2006-09-25 02:41:27 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Check out this IRS pub starting a page 208 to see if you are eligible and how to calculate. http://www.irs.gov/pub/irs-pdf/p17.pdf
2006-09-25 03:14:08 · answer #1 · answered by curious george 5 · 0⤊ 0⤋
If you're pulling down over 110K why are you worried about the couple hundred bucks difference in taxes that you will notice, in most cases if you don't have very many other deductions in the same category you would be better off staying where you are.
2006-09-25 02:54:33 · answer #2 · answered by earnhardtiskingofnascar 2 · 0⤊ 0⤋
At your income level you will be allowed 20% of qualified expenses with a limit of $3,000 for one child and $6,000 for two or more children. You calculate this credit on a IRS Form 2441 the following links take you to that form and the instructions.
http://www.irs.gov/pub/irs-pdf/f2441.pdf
http://www.irs.gov/pub/irs-pdf/i2441.pdf
2006-09-25 05:01:18 · answer #3 · answered by ? 6 · 0⤊ 0⤋