However, D as the parent has priority and could qualify for child tax benefits (the earned income tax credit, dependent care credit
, if applicable, and child tax credit) on her personal return by claiming G as a dependent.
The (https://www.fool.com/investing/general/save-big-with-dependent-care-benefits.aspx) Child and Dependent Care Credit
is a nonrefundable tax credit designed to make it easier for working parents to afford child care.
They include the child tax credit, the American opportunity credit, and the child and dependent care credit
, as well as a deduction for student loan interest.
Finally, the proposed regulations would amend various regulations on the surviving spouse and head-of-household filing statuses, the tax tables for individuals, the child and dependent care credit
, the earned income tax credit (EITC), the standard deduction, joint tax returns, and taxpayer identification numbers (TINs) for children placed for adoption to reflect current law.
The Child and Dependent Care Credit
is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year.
* Child and dependent care credit
. A tax credit may be available if you pay for the care of a dependent under the age of thirteen or of your spouse or dependent who is unable to care for him or herself.
There are a variety of individual tax credits available including the American Opportunity Tax Credit to help pay for college (up to $2,500), a child or dependent care credit
($3,000 for a single individual or $6,000 for two or more), a credit for adoption expenses (based upon income, but limited to $12,650 in 2012), a "Savers" credit to incentivize retirement savings, and credits for certain energy-saving devices.
* The enhanced child tax credit and child and dependent care credit
Additionally, the money you spend on household employees may qualify for tax benefits, such as medical deductions and the child and dependent care credit
. However, if you claim such deductions and credits, a subsequent audit of your income tax return might reveal a failure to file required returns and pay the tax relating to hiring household employees.
(75) Among the provisions that allow a credit for expenses incurred with respect to a taxpayer's dependents are [section] 21 (dependent care credit
), [section] 24 (child tax credit), [section] 25A (American opportunity, hope, and lifetime learning credits), [section] 32 (earned income credit), and [section] 35 (health insurance credit).76 As mentioned above, the overlap between the "dependents" covered by these deduction and credit provisions and the identification and documentation requirement imposed for purposes of the personal exemption varies.
Child or Dependent Care Credit
: Taxpayers who pay someone to care for their dependent under the age of 13 or spouse who is not able to care for himself or herself, may be entitled to get a credit of up to 35 percent of their expenses.