With Tax Day upon us, we thought it would be a good idea to highlight the Child and Dependent Care Credit that many parents are eligible for. While we encourage you to visit the IRS website or direct your questions to your accountant, here are a handful of things you may want to know before you file. Who couldn't use another tax deduction, right?
What is the Child and Dependent Care Credit?
Very simply put, it's a tax break for parents and custodial guardians who have paid for someone to care for their child while they are at work. Child care centers, summer camps, day camps, nanny care, and at home providers are all types of child care that qualify for the tax deduction. Parents can get up to $3000 credit for one child or $6000 for two or more.