Chris C wrote:

- quote -

It's called the "Child Care Credit" - and that means it's
not a deduction.

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"Chris C" <fish-1[at]comcast.net> wrote:

- quote -

Look at the instructions for Form 2441. Based on your AGI,
you may get from 20-35% of your expenses up to $3000 per
child as a credit against your tax liabality.

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"Chris C" <fish-1[at]comcast.net> wrote:

- quote -

See IRS Form 2441 and instructions. If you then have further
questions, come back and post them here.

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Chris C <fish-1[at]comcast.net> wrote:

- quote -

See http://www.irs.gov/publications/p503/index.html for
details, but basically if you pay child care so you and your
spouse can work, the amount you pay up to $3000 (6000 for
more than one child under age 13) can be used to calculate
a tax credit which reduces your tax bill. There are
adjusted gross income phaseouts which are described in Pub
503. Form 2441 is usedto calculate the tax credit.

If you have a cafeteria plan from your employer that
reimburses you for child care under Internal Revenue Code
Section 125, you can use that for a potentially better
benefit. Still must use form 2441 though.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"Chris C" <fish-1[at]comcast.net> wrote:

- quote -

It's a tax credit, not a deduction. You figure it on Form
2441.

You can apply the credit to up to $3,000 of child care
expenses for one child or up to $6,000 for two or more, or
your earned income, or your spouse's earned income,
whichever is least.

You don't get the full amount as a credit; you get a
percentage that runs from 20% to 35%, depending on your
adjusted gross income. If you are in a low tax bracket, this
will be more favorable than a deduction.

--
Chris Green

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hris C wrote:

- quote -

See IRS Pub 503. It explains the credit. Also see either
Form 2441 and its instructions or Form 1040A Schedule 2 and
its instructions. You will find that there is a limit per
child and that the amount of the credit is determined by
your income. However, it does not phase out to zero. The
income determines the per cent of expense to use (ranges
from 35% to 20%). http://www.irs.gov/publications/index.html

--
Alan
http://taxtopics.net

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Can someone elaborate on the daycare deduction? We'll be
putting our child in day-care so that my wife and I can
work. Is the full cost of the day-care deductible or does
it phase out like the $1,000 child credit? If it phases
out, what is the schedule? Thanks so much!!!

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