Calculate Child Tax Credit for 2011, 2012

If you pay someone to care for your child then you are probably aware that you will receive some type of tax benefit but you may not know how much.

If you work full time then chances are the credit will not cover all of the child care expenses but there is no reason why you should not take advantage of a tax deduction of up to $3,000.00 per qualifying child. If you have more than one child you can claim up to $6,000.00 in child care expenses.

Once you claim the child care expenses you will then receive a child care credit of up to $1,050.00 per child. If you have more than two children you can claim around 20% of your child care expenses.

How Much Can I Make?

If you pay for childcare and your income exceeds $43,000.00 then your credit amount will begin to decrease. If your credit exceeds the amount of tax liability due, you will not receive any type of cash refund from this credit. It is strictly applied to reduce your tax liability.

What is a Qualifying Dependent?

A qualifying dependent must be twelve years of age or younger. The child must be related to you and live with you for at least half of the tax year. Another form of qualifying dependent care cost would be care for a disabled adult that is unable to care for themselves. The care must be provided by someone other than your spouse and the care provider must be over the age of 19.

To calculate your child care tax credit, Visit TurboTax Online.