W4 Dependent Working Parents Toddlers Education Tax Credits

[awpritzlaff]

Both my spouse and I work full time jobs. I am filling out W4. We have one child with nanny and the other (4) in preschool. What amount should I put for education tax credit?

[Bsch4477]

Do you mean child care credit?

• While the W-4 is primarily used to adjust withholding for the Child Tax Credit, you can potentially reduce your withholding in anticipation of other credits, such as the Child and Dependent Care Credit, by factoring them into your withholding calculations.
• You would do this in Step 3 of the W-4 by entering the total amount of anticipated credits.

[awpritzlaff]

and how do determine the amount of those credits?

[Bsch4477]

https://www.irs.gov/credits-deductions/individuals/child-and-dependent-care-credit-information

[awpritzlaff]

great thank you. I understand w4 is for withholdings for employer. The information link you provided said "The maximum amount of qualified expenses that can be used in computing the credit is $6,000." So am putting $6,000 in option? Below is my layout for w4 online for filling. 

Number of dependents under the age of 17

Number of other dependents

Other tax credits (such as education tax credits and the foreign tax credit)

$

[Bsch4477]

Correct. 

[xmasbaby0]

The child-related credits can be confusing.

You do not get education credits for preschoolers.   Education credits are generally entered for college students.  You do not enter anything about education credit on a W-4.  

 The W-4 is asking you about the child tax credit----which you can get for your children who are under the age of 17.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-tax-credit/L2lNhfGDl_US_e...

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/additional-child-tax-credit/L6x...

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

If you pay someone to take care of your child so you can work, or your child attends preK so you can work, you can enter information for the child and dependent care credit--not education credit----when you prepare your tax return.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/child-dependent-care-credit/L8h...

https://turbotax.intuit.com/tax-tips/family/the-ins-and-outs-of-the-child-and-dependent-care-tax-cre...

Federal>Deductions and Credits>You and Your Family>Child and Dependent Care Credit

https://www.irs.gov/help/ita/am-i-eligible-to-claim-the-child-and-dependent-care-credit

[Hal_Al]

Q. "The maximum amount of qualified expenses that can be used in computing the credit is $6,000." So am putting $6,000 in option? 

A. No.  You are allowed a percentage (20 to 35%) of the $6000, for the dependent care credit (DCC).  For most people, it's 20%, so you add $1200 for the DCC on line 3 of the W-4. See the chart on form 2441. https://www.irs.gov/pub/irs-pdf/f2441.pdf