Lower Your Taxes or Increase Your Refund

Child Care Tax Credits ~

These days families need every bit of help they can get, so be sure to take advantage of the Federal Child Tax Credit on your taxes.

 

If you have children who are under age 17 at of the end of the calendar year, you can get a tax credit of up to $1,000 per child on your tax return.  A tax credit reduces your tax bill dollar-for-dollar.  It’s as simple as that.  If you have two qualifying children, then can knock the amount you owe to Uncle Sam by $2,000.  However, that amount is reduced somewhat if you are in higher income levels.

 

So just what is a “qualifying child”? In order to qualify for the Child Tax Credit, you must have a child that meets all of the following requirements. He or she must:
         •  Be your dependent son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of them, and
         •  Be claimed as a dependent on your tax return, and
         •  Be under the age of 17 at the end of the year, and
         •  Not have provided more than half of their own support, and
         •  Live with you for more than half the year, and
         •  Be a U.S. citizen, U.S. national, or U.S resident alien

 

In addition, the New York State personal income tax also has some provisions that can help.

         ·  Child and dependent care credit: This is a credit for expenses for the care of a child or dependent while you work or go to school.  The credit amount is

            between 20% to as much as 110% of the federal credit, depending on the amount of your New York State adjusted gross income.  This credit is refundable for

            New York residents only.

         · Empire State child credit: This is a credit for those with a qualifying child.  The amount of the credit is the greater of 33% of the portion of the federal child

           tax credit attributable to qualifying children, or $100 multiplied by the number of qualifying children.  This credit is available to single taxpayers with an

           adjusted gross income (AGI) of $75,000 or less and married filing jointly taxpayers with an AGI of $100,000 or less.

 

Ok ~ so some people might find this all a bit daunting and confusing ~ so here is perhaps the best advice of all; just be sure to remember to consult your tax advisor, the IRS, or state revenue officials to answer any question you might have about eligibility or to answer any other questions.  Just be sure to get every bit of help you can so you can pay as little as possible.


Beginning January 22, 2013, you can request a "Year-End Statement" from our office.  This statement is intended to provide you with a tool to assist with your income tax return preparation and help you determine the appropriate amount of dependent care expenses to claim.

Child Care Tax Credit Resources  Detailed information on federal child care tax credits for parents is available from:

• The Internal Revenue Service                     Call (800) TAX-1040 or (800) 829-1040
• Ta
x Information for Parents:                      http://www.irs.gov/individuals/parents/index.html
Child and Dependent Care Tax Credit:     http://www.irs.gov/individuals/article/0,,id=121435,00.html
Child Tax Credit:                                           http://www.irs.gov/individuals/article/0,,id=121434,00.html 
Earned Income Tax Credit:                         http://www.irs.gov/individuals/article/0,,id=130102,00.html 
The National Women's Law Center           http://www.nwlc.org/loweryourtaxes

* Credit amounts may change from year-to-year, are usually dependent on total family income and size, and may be subject to maximum income or child care spending limitations. Consult your tax advisor, the IRS, and state revenue officials to confirm your eligibility.