Child and Dependent Credits

Child and Dependent Tax Credits

​As a parent or caregiver, you face many challenges when it comes to managing finances. From the cost of child care to the expenses of raising a family, it's easy to feel overwhelmed by the cost of caring for your loved ones. However, there is good news. The government provides two tax credits to help offset these costs: the Child Tax Credit and the Dependent Care Tax Credit.

Child Tax Credit: The Child Tax Credit is available to taxpayers with qualifying children under the age of 17. The credit amount for tax year 2022 is $3,000 per child, with a phase-out starting at $75,000 for single filers and $150,000 for married couples filing jointly. This credit helps offset the cost of raising children and can result in a lower tax bill or a larger tax refund.

Dependent Care Tax Credit: The Dependent Care Tax Credit is a credit available to individuals who pay for the care of a dependent so that they can work or look for work. The credit helps offset the cost of caring for dependents, such as children under age 13, disabled spouses, or other dependents who are unable to care for themselves. The credit is worth up to 35% of eligible expenses, up to a limit of $3,000 for one dependent and $6,000 for two or more dependents.

Whether you're a parent, caregiver, or both, these tax credits can help provide some much-needed financial relief. So don't miss out on the opportunity to claim these credits on your tax return and get the support you need to care for your loved ones.


Reference:
https://www.irs.gov/taxtopics/tc602