Per-Child and Dependent Care Tax Credits – Did You Know?
If you have a child who was under the age of 13 throughout 2018 or who was under the age of 17 and requires assistance for self-care, you might be eligible to claim both the Child Tax Credit and the Child and Dependent Care Credit.
To qualify for the Child Tax Credit (also known as the “per-child credit”), you must have a child who was less than 17 years old throughout 2018, can be claimed as a dependent on your tax forms, and lived with you for at least six months of the year. The income limit at which a phase out of the credit begins was nearly quadrupled under the Tax Cuts and Jobs Act of 2017, to $200,000 ($400,000 for married filing jointly). The credit itself doubled from $1,000 to $2,000 per child.
The Dependent Care Tax Credit is a dollar-for-dollar tax credit for expenses such as day care or home assistance needed for a dependent child under age 13 or incapable of self-care, with a maximum credit of $3,000 for one child.
Check with us to learn whether you can claim one or both of these credits.