The Child and Dependent Care Credit was introduced by the U.S. government as a tax break for some workers. These would be those who need a financial boost to offset expenses associated with caring for disabled children or dependents.
In other words, parents who pay for the care of their children or relatives while working can claim the Child and Dependent Care Credit.
This would be a kind of support, in such a complex time in the United States, where supporting a family is extremely costly. On the other hand, companies insist that workers return to their offices, but in addition, the price of childcare is increasing.
So how do you qualify for this tax deduction?
You must have paid someone to care for a young child, your spouse or a dependent family member. If you made one of these choices, you will be eligible for the child and dependent care tax credit.
In the case of children, they must be under 12 years of age; and the spouse must not be able to take care of him/herself. On the other hand, dependents must have stayed at home for at least half of the year.
Do not forget that the taxpayer must have income from a job and have paid childcare to qualify for the credit.
Thus, they will be able to claim between 20% and 35% of their childcare expenses up to a maximum of $3000.00 USD for one person. It could also be $6000.00 USD for two or more persons.
In this regard Chuck Rettig, commissioner of the Internal Revenue Service, expressed that there are many tax credits available to families. "We don't want you to overlook the Child and Dependent Care Credit," he said in a press release.