Search results
Results from the WOW.Com Content Network
Fairness doesn't usually enter into laws made by Congress. I suppose they had a good reason to deny the dependent care credit to MFS, but you would have to ask them (probably back in 1986). You can use a tax-free dependent care FSA to pay for care expenses even when married filing separately.
The Child and Dependent Care Credit is worth as much as 35% of your qualified expenses, up to $3,000, (for one qualifying person), and $6,000 (for two or more qualifying persons). Your percentage depends on your AGI, with the higher percentages applying to lower incomes and vice-versa.
CHILD AND DEPENDENT CARE CREDIT . You will not get the childcare credit until (unless) you enter income earned from working. The credit does not work unless you enter your income first. If you are filing a joint return you must show income for both spouses, or show that one or both of you was a student or disabled.
The Dependent Care Credit is limited to $3000 in expenses per child. If you have an FSA, your limit is actually raised to $5000 for one or more children. You could only get an extra credit on your tax return if your FSA was under $3000. If you had 2 children, and your FSA was $5000, you can get a credit for that extra $1000.
To claim after-school expenses, the child or dependent must be age 13 or younger. You must be the custodial parent. . All expenses must be incurred so that you could work, look for a job or go to school full-time. If you are married, your spouse must also meet the same work requirements.
I have a $10,500 dependent care flex spending account. I entered this information in TurboTax. I then filled out the section on Child and Dependent Care Credit. I entered $10,000. There is a Note that says "You have $10,500 employer-provided benefits. In order to receive this credit, your expens...
For example we paid $10,800 for childcare, we have 2 children. We put $5000 in an FSA account, the program shows that we had $5800 in out of pocket expenses. ($10800 - $5000). But when you get to the screen it is showing our total eligible Dependent care credit is $6000, dependent care benefit on W2 is -5000 to our total eligible credit is $1000.
The IRS states in Publication 503, Child and Dependent Care Expenses that . If you pay for services before they are provided, you can count the prepaid expenses only in the year the care is received. Claim the expenses for the later year as if they were actually paid in that later year. [Bolding mine.]
EIC or Dependent Care Credit Only @Ocala @Kailef Yes, there is a little known provision in the rules. If the child meets all the qualifying child (QC) rules, except the self support test, he is still a qualifying child for EIC, even though he is not a QC for being a dependent.
Yes. But, if you claim the dependent care credit, she will have to claim the money as income and pay social security and medicare tax (15.3%), as well as income tax. If she babysat in your home, instead of hers, she is classified as a household employee. Grandparents (parent of the taxpayer) are exempt from the "Nanny tax".