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Under federal law,
the child care credit may be claimed on either a joint tax return or on
a separate return by a person eligible as “Head of Household.”
The child care credit provides tax credits based on income levels for
employment-related child care expenses up to $3,000 for 1 child or
$6,000 for 2 or more children.
This credit is separate from the “child credit” of $1,000.00 per child
per year, which is provided to the parent who claims the dependency
exemption.
To qualify as “Head of Household,” you must maintain a home that was the
principal home of your child for more than one-half of the tax year, be
eligible to claim the dependency exemption for that child, furnish more
than one-half of the costs to maintain the home and must not have
resided with the other parent for the last 6 months of the tax year.
Unlike the dependency exemption, the custodial parent cannot transfer
the child care credit to the non-custodial parent.
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