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.
If a child pays for the care of a parent so that the child can work, the child may be eligible for a dependent care credit
[IRC section 21].
There's also the Child and Dependent Care Credit
, which lets you claim up to 35% of the cost of qualifying child care expenses, up to a maximum of $3,000 for one child under 13, or $6,000 for two or more children under 13.
A child's custodial parent usually can treat the child as a qualifying child for purposes of the EITC, head-of-household status, and the dependent care credit
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.
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
Accomplishments Most Proud Of: During time outside of government was instrumental in developing New York state's Refundable Earned Income Tax Credit and refundable child and dependent care credit
, which together provide nearly $1 billion in tax benefits to low-income households annually.
The amount of employment-related expenses available in calculating the dependent care credit
of IRC Section 21 is reduced by the amount excludable from gross income under IRC Section 129.
One involves eligibility for the child and dependent care credit
by taxpayers who are "Married Filing Separately.
Additionally, the amount of expenses eligible for the dependent care credit
must be offset dollar for dollar by the amount of expenses that the taxpayer excludes from income under the dependent care plan.