Dallas parents: ask your tax professional about the Child and Dependent Care Credit. If you paid someone to care for your child or children younger than 12, you could get a tax credit. Depending on your income and other credits and deductions, you may qualify for up to a $3,000 credit for one child and $6,000 for two children. Of course, Uncle Sam doesn't just give away tax credits, so there are some conditions to meet.
First, the child in care has to be younger than 12 at the time of care. Also, the person paid for childcare cannot be your spouse or child under the age of 19. In fact, you have to name your provider on your tax return and include either his or her Social Security number or Tax ID number. This is another reason to use only state regulated childcare as parents who use unlicensed childcare do not qualify for the credit. Search for childcare regulated by the Texas Department of Family and Protective Services here.
One more thing: only childcare provided so the parent(s) can work or look for work will qualify for the credit. Using a sitter to go to the gym or for date night won't count. Parent(s) must also have taxable income for the year. Ask your tax preparer about other restrictions.
This article is for information purposes only and is not tax advice. Ask your tax professional about any credits or deductions.
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