Who qualifies for the child and dependent care credit

Childcare or adult dependent care can be a major expense. Fortunately, the child and dependent care credit can provide some relief. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of what they spend; limits apply.

For the purposes of this credit, the IRS defines a qualifying person as:

• A taxpayer’s dependent who is under age 13 when the care is provided.
• A taxpayer’s spouse who is physically or mentally unable to care for themselves and lived with the taxpayer for more than half the year.
• Someone who’s physically or mentally unable to take care of themselves and lived with the taxpayer for six months and either:
   a) The qualifying person was the taxpayer’s dependent or
   b) They would have been the taxpayer’s dependent except for one of the following:
        • The qualifying person received gross income of $4,200 or more
        • The qualifying person filed a joint return
        • The taxpayer or spouse, if filing jointly, could be claimed as a dependent on someone else’s return

June 11th, 2020 by