Child care tax deduction comes as a great help for those parents who are concerned about the day care service for their child. Many parents are working couples and are therefore willing to find a good day care service for their child. But as with any quality service this comes at a high price. For this fact parents are worried for not being able to pay the good service that assists with the care for their child while they are at work.
Not having the money to pay can become very frustrating for average families, and this is the reason that these tax deductions have been introduced in the first place. To provide parents the peace of mind that they can always look for a quality day care service for their child without worrying about the money.
With this child care tax deduction, parents can claim up to $1,000 for a child but they need to qualify in order to obtain the deduction. You need to know that these deductions have been created for people like you, who can not afford paying more money for their child care. Let’s see what makes you eligible for these deductions:
* You need to be USA citizen, resident or alien to qualify and the child should be related to you by birth, marriage, adoption or has been entrusted by foster house to you.
* The child should be at the dependable age which means that they need to be younger than 16 at the end of the year.
* Your income as a married couple (filing a joint tax deduction form) shouldn’t exceed $110,000. As a single or a widow your income shouldn’t; exceed $75,000 and for married couples filing separate forms the income shouldn’t exceed $55,000 per individual.