Child and Dependent Care Credit

Child and Dependent Care Credit

Child and Dependent Care Credit means:
a nonrefundable tax credit allowed for a percentage of the expenses incurred for household services and for care of a child or other dependent when a taxpayer maintains a household that includes one or more dependents who are under 15 years of age or mentally or physically incapacitated. The percentage of credit varies inversely with the taxpayer's Adjusted Gross Income between $10,000 and $28,000. Former IRC (check if this IRC provision is current here) §21.

In other words: A person may be able to claim this credit if they paid someone to care for their dependent under age 13 or a disabled dependent while they worked or looked for work. As much as $3,000 of qualifying expenses for one child and up to $6,000 for two or more can be claimed.

Not to be confused with the child credit, this one offsets part of the cost of paying for care for a child under the age of 13 or disabled dependent while the taxpayer work. For 2010, the credit – which ranges from 20% to 35% depending on his or her income – can be applied to as much as $3,000 of qualifying expenses if the taxpayer pay for the care of one qualifying child or up to $6,000 if the taxpayer pay for the care of two or more.


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