A married couple has the following income
Husband: 25,000
wife: 26000
Child day care epenses for the year: 7000.
What is the dependent care credit?
2007-05-22 07:19:13 · 2 answers · asked by uncivilized_scholar 2 in Business & Finance ➔ Taxes ➔ United States
Depends on how many kids. Look at form 2441. You can list $3000 if you have one eligible child receiving the care, $6000 for two or more children.
Percentage would probably be .20, so your actual dependent care credit would probably be $600 if you just have one eligible child, or $1200 if you have two or more.
2007-05-22 07:33:01 · answer #1 · answered by Judy 7 · 2⤊ 1⤋
Couple of things to add what Judy has said, what's the age of the child(ren)? Dependent care credit ends the year the child(ren) turns 13, although you can take the dedendent care credit for expenses incurred in the year that the child(ren) turns 13 up to when they did turn 13. Also, the dependent care credit is not a refundable credit, so you have to have a tax liability in order to get any benefit from the dependent care credit. I've included a link to the irs website for the dependent care credit.
2007-05-22 07:52:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋