The Form 2441 Child and Dependent Care Expenses is the form you fill out so you can deduct the dependent care expenses you paid to the child care provider. It is not reporting any expenses your provider paid, but rather the amount you paid to that provider. Your child care provider is then required to report that income on his/her own tax return.
Also, the Child and Dependent Care Credit is what is called a non-refundable
credit which means you have to have a tax liability to benefit from it.
That means that it will only reduce your regular income tax liability (if you
had one). Additionally, the income you have must be "earned"
income from a job or your business, and not from investments or other sources.
The IRS Child and Dependent Care Expense Credit can reduce your
tax bill if you paid for a dependent's care so that you could work or go to
school full-time. There is no minimum amount you have to spend to qualify.
The credit is worth up to $3,000 per dependent – with a maximum
of $6,000 for two or more dependents – as long as you (and your
spouse, if you're filing jointly):
- Have
earned income; and
-
Paid
someone else to care for a child under age 13, disabled spouse, or dependent;
and
- Paid
the expenses so you could work, look for work, or go to school full time.
What is the Child and Dependent Care Credit?
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