Dependent Care Credit 1. What is a Tax Credit Credits are designed to offset tax liability Refundable credits Nonrefundable credits Dependent Care Credit.

Dependent Care Credit

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What is a Tax Credit• Credits are designed to offset tax liability• Refundable credits• Nonrefundable credits• Dependent Care Credit is nonrefundable

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Rules• Qualifying Child Rules

o Child must be under the age of 13 o Must be a qualifying childo Age rule does not apply if the person is mentally or

physically incapable of self-careo Child must live with the taxpayer for more than half of

the year.

• Expense Ruleso Expenses incurred while parent is working or looking for

worko School expenses are not eligibleo Summer day camp qualifies, no over night camps

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More Rules• No MFS filing status• Must have earned income• Must have the care providers address, name, and

tax ID number/SSN

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TaxWiseMain Info Page

• Check the box for DC o DC – Dependent Care Credito Automatically adds form 2441 to tax return

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TaxWiseForm 2441

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TaxWiseForm 2441 Continued

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