Child Care Tax Credit for 2011, 2012

If you rely on someone else to help care for your children while you are working then chances are that you must pay them for their services. Although this can be very expensive there are some great tax benefits you can receive for child care.

By claiming the child care tax credit you will be reducing your current tax liability which can make your tax bill much lower.

As with any credit there are some guidelines that must be followed:

• The care must be provided for a qualifying individual.

• The credit will only cover care that was provided while you or your spouse was working.

• You and your spouse must have annual taxable income to prove you are working.

• The care cannot be provided by a spouse or anyone under the age of 19.

• You must file your taxes as single, married filing jointly, head of household, or as a qualifying widower.

• The care provided must be for a dependent that lived in your home for more than half of the year.

• The credit cannot exceed 35% of your qualifying expenses.

The child care tax credit covers qualifying children as well as disabled adult dependents. You may receive a credit for up to $3,000.00 for each dependent that care was provided for. The child must be under the age of 12 and the adult must be unable to care for themselves while you are away.

To claim your child care tax credit, visit TurboTax Online.