| The introduction of a child care tax deduction is an | | | | deduction you must meet the following requirements. |
| incredibly pleasing idea to most parents' ears. The | | | | First they must be claimed as a dependent on your |
| expense of raising a child can cost a lot. It can | | | | taxes. They must be 16 or younger at the end of the |
| overwhelm most if not all of the other bills. Having to | | | | year. They must also be a United States citizen, alien, |
| settle on a lesser day care because of the expense | | | | or resident to qualify. They must also be related to you |
| of it can be a disappointing and frustrating prospect. | | | | by birth, adoption, marriage, or as foster children. There |
| However, when you have the tax deduction, this can | | | | are only two limits that may disqualify you from using |
| make the prospects a bit brighter. | | | | the deduction. One if your income exceeds $75,000 |
| Previous laws got updated in 2001 when Bush cut | | | | for single or widow, $110,000 for married filing jointly or |
| back taxes; this increased the tax deductions. Now | | | | $55,000 married filing separately, you cannot use the |
| parents are entitled to use the child care tax reduction | | | | deduction. If you do exceed any of these amounts |
| and claim up to $1,000 per child. Being able to use this | | | | you may still be able to apply for a tax deduction, but it |
| deduction can open up better options in day care for | | | | must be calculated to reflect your income. Your tax |
| parents and their children. | | | | liability can also affect your qualification as well. |
| The child care tax deduction is aimed mostly at helping | | | | Being able to use the child tax reduction to help in the |
| out the middle class. The middle can fall in the gaps a | | | | daycare of your child can be worth more than you |
| lot when it comes to day care and this child tax | | | | would think. Not only does it bring you peace of mind, |
| deduction aims to correct this problem. Even with | | | | being able to choose a day care that you are |
| certain qualifying factors regarding income, the middle | | | | comfortable with, but it can also save you money in |
| class can benefit from the child care tax reduction. | | | | the long run. If you qualify, remember to apply for the |
| Of course to have your child qualify for the child care | | | | child tax deduction, it's worth it. |