If you are someone that pays for day care or child care expenses for your children, or take responsibility for disabled adult dependants, then you might be eligible for a federal tax credit of no more than $3000 for each dependant. If you have more than one dependant, this amount may rise up to $6000.
In order for you to be eligible for child and dependant federal tax credit, you need to have a dependant child who is aged twelve years or younger, or a dependant of practically any age who is unable to care for themselves, whether due to their young age, old age, or illness. If the dependant is a child above thirteen years of age, then the child needs to be mentally or physically unable to take care of him or herself.
If you have a child who is not your dependant because you have allowed the non-custodial person to have the child be their dependant, then you can still claim your child care federal tax credit although the child is not considered your dependant. The only parent that can claim the child care credit is the custodial parent.
The dependant must also meet certain qualifications, as should your day care service provider, if you use one. You must have been earning an income at some point, and the care that is given to you should enable you to look for work if you do not have any or work if you already have a job. You must also decrease your day care expenses by the amounts that are provided by a care benefits plan, if your place of employment provides you with one.
You are not allowed to claim adult or child day care expenses for anyone who does not live under the same roof as you. You are required to provide a home for the dependant and also pay more than half the costs required to maintain a home for your dependant.
You should also make sure that your child or adult day care services are not provided by someone who is one of your dependants. For instance, you are not allowed to pay your son to take care of your other younger children. Before you claim your child care credit you need to obtain your day care provider's name, address, and Employer Identification Number or Social Security Number. All the information required must be reported on Form 2441 before you can claim your Child and Dependent Care Tax Credit.