Wednesday, October 28, 2009

Does anyone know how much of a credit claiming child care is?

We are over the $110K limit to claim the standard deduction, but I am in a dilemna of switching from my non licensed day care provider to a licensed one and am wondering if the tax credit we would get would be significant?



I looked on irs.gov, but wasnt sure. I do know that if our joint return%26#039;s AGI is over $110K (which it is) then we only get a reduced amount. Does anyone know how to calc so I could take this into consideration for switching???????



Does anyone know how much of a credit claiming child care is?

Check out this IRS pub starting a page 208 to see if you are eligible and how to calculate. http://www.irs.gov/pub/irs-pdf/p17.pdf



Does anyone know how much of a credit claiming child care is?

If you%26#039;re pulling down over 110K why are you worried about the couple hundred bucks difference in taxes that you will notice, in most cases if you don%26#039;t have very many other deductions in the same category you would be better off staying where you are.



Does anyone know how much of a credit claiming child care is?

At your income level you will be allowed 20% of qualified expenses with a limit of $3,000 for one child and $6,000 for two or more children. You calculate this credit on a IRS Form 2441 the following links take you to that form and the instructions.



http://www.irs.gov/pub/irs-pdf/f2441.pdf



http://www.irs.gov/pub/irs-pdf/i2441.pdf

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