Child care expenses tax cuts

We reserve the dependent care flexible spending $ 5,000 last year to pay for my son’s child care expenses through the work account. However, we ended up more than $ 5,000 out of pocket costs. We can also put the child care credit, we submitted a tax return?

No. Because you only pay for care for a child younger, you can not send their children to take care of excessive credit spending than the age of 13. However, if you pay two or more children, you can ask as high as more than 5000 covered by your Flex plan costs $ childcare credit $ 1,000.

apply to child care credit of up to $ 3,000 a child or child-care expenses up to $ 6000 of two or more. You can run the most flexible program, regardless of whether the number of children involved, to $ 5,000. Therefore, for having two or more qualifying children who play the greatest degree of flexibility in the program, up to $ 1,000 of additional expenses may be eligible for a credit family. As the credit ranges from 20-35% (depending on income), which could knock $ 200 to $ 350 off the family tax bill.

A nanny, child care nurseries or kindergartens count the cost of credit or dependent care FSA, as before school and after-school care and summer camp at the expense of children younger than 13 strokes cause you and your spouse can operating costs. You can also qualify, if one spouse is a full-time student and the other is working. For more information about child care credit, see tax cuts camp.

In order to calculate the child care credit, you can ask – whether you get health benefits associated from your employer – see IRS Form 2441. See Publication 503, and child support , especially the “reduction of $ limitations” on page 11 Related care FSA and a child care credit on coordination.