Child Care Tax Credits

Child Care Tax Credit

If you paid someone to care for a child or a dependent so you could work, you may be able to reduce your federal income tax by claiming the credit for child and dependent care expenses on your tax return, according to the IRS. This credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13. The credit is also available if you paid for care of a spouse or a dependent of any age who is physically or mentally incapable of self-care.

For more information on the Child and Dependent Care Credit, see Publication 503, Child and Dependent Care Expenses. You may also order it by calling toll free 1-800-TAX-FORM (1-800-829-3676).

The Earned Income Tax Credit (EITC)

You may qualify for the Earned Income Tax Credit on your tax return (EITC). The EITC is a tax credit for lower income workers who meet certain rules. Over eighteen million people already benefit from EITC. Yet some people who are eligible don’t know it exists, how to qualify, or how to claim it.

Find out if you qualify for the EITC, call 1-800-829-3676 for a free IRS Publication 596, Earned Income Credit. You can also download it from the Internet at the IRS website: www.irs.gov/eitc.