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Who's Watching the Children? Tax Breaks for Working Parents!07.22.14

If you are a parent and need someone to look after your children while you work or look for work, you understand what a costly added expense it can be. But, there is some good news—your childcare costs may actually help you qualify for a tax credit!

That’s right! The Child and Dependent Care Credit is available for child-care expenses incurred during the summer break—and throughout the rest of the year, too. Get the facts so you don’t miss out!

• Who qualifies and for how much?

 If you pay someone to care for your qualifying child (under the age of 13) or your disabled spouse or dependent, you may qualify for a credit of up to 35 percent of your expenses. 

 The credit directly reduces your taxes and is available for certain child and dependent care expenses. Depending on your adjusted gross income (AGI), the credit may be as much as $1,050 for one qualifying individual and $2,100 for more than one.  

• Can you qualify if you use an at-home childcare provider?
Absolutely,
whether use a daycare facility outside of your home or a sitter that comes to you, you'll get some tax benefit if you qualify for the credit.

 Let the Tax Pros at Jackson Hewitt help you getting everything you deserve at tax time!