And that’s just for one kid.
What is the dependent care tax credit?
What qualifies for the dependent care tax credit?
(Those pesky teenagers and their self-sufficiency!)
This makes the dependent care credit especially powerful for folks taking care of loved ones with certain disabilities.
There are some limits to keep in mind.
No tax breaks for date night, I’m afraid.
How much can I get from the dependent care tax credit?
The percentage of those expenses that you’ll get back decreases depending on your income.
For individuals or couples making less than $15,000 a year, the rate is 35%.
For anyone making more than $43,000, it’s 20%.
Between those amounts, the rate decreases from 35% by a percentage point for every $2,000.
As of the 2024 tax year, this credit has no income limit.
For more, see the myths abouttracking your federal refundthat the IRS recently debunked.
