Understanding the Child and Dependent Care Credit: Key Eligibility Criteria

Dr. Friday Tax Tips
Dr. Friday Tax Tips
Understanding the Child and Dependent Care Credit: Key Eligibility Criteria
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In this insightful episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, President of Dr. Friday’s Tax and Financial Firm, delves into the important aspects of the Child and Dependent Care Credit. She emphasizes that this credit is applicable for expenses incurred in daycare or childcare services for children under 13. A crucial point highlighted is that the credit is only available if childcare is needed due to work commitments of the parent or guardian. Dr. Friday clarifies that personal activities, such as getting nails done, do not qualify for this credit. She also explains the financial limits of the credit, with up to 35% of expenses covered or a maximum of $3,000 for one child and $6,000 for two or more dependents. Dr. Friday concludes by urging listeners to review their taxes to ensure they are taking advantage of this valuable credit.

Transcript

G’day, I’m Dr. Friday, President of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Child and dependent care credit. A child and dependent care credit means that you’re covering a percentage of daycare or some sort of child care for children under the age of 13. A parent or spouse whichever it might be unable to watch them because either they’re working or they have some other type of work. It has to be work guys. It can’t just be I want to go out and get my nails done and so I’m putting my child in daycare. It has to qualify as a work and then you will qualify up to 35% or $3,000 in expenses for two or more dependents $6,000 maximum. So if you haven’t done this you need to check your taxes.

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