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