Parents who work may be able to take advantage of the federal Child and Dependent Care Credit when they file their 2014 federal income taxes. A credit lowers the amount of money you have to pay. In order to claim this credit, expenses must be for one or more children under age 13 and must be work-related. This includes the cost of childcare while you are looking for work if you do not have a job.
Care provided at home, a daycare facility or at a day camp is eligible for the credit. The amount is a percentage of qualified expenses you pay and can be as much as 35 percent, depending on your income. The maximum credit is $3,000 for one child and $6,000 for two or more. Also, overnight camp and summer school tutoring costs do not qualify. Neither do the cost of care provided by your spouse, your child under age 19 or anyone else you claim as a dependent on your taxes. When it’s time to file, you will need receipts and records to document the credit you are claiming. This includes the name, address, Social Security or employer identification number of the care provider. The credit is available year-round. Find more information online at www.IRS.gov in Publication 503. You can also call 800-TAX-FORM (800-829-3676) to request a copy by mail.
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