Many taxpayers need some extra help in dealing with their dependents. Those who take care of their disabled relatives or childcare for their children under 13 so that they can work may be eligible to reimburse their child and dependent care expenses. This tax credit amounts to up to 35 percent of the qualifying expenses incurred while you are at work due to the care of a dependent. Taxpayers are eligible to receive child and dependent childcare credit if they have paid for childcare services for children under 13 years of age. Children over 12 years of age can be eligible if they are unable to take care of themselves due to a disability. You will have to prove that the employee can not take care of himself. You will also need to prove that you were employed or were looking for a job as a result of childcare. If your employer offers childcare benefits, you must deduct the amount from your expenses before you claim the credit.
Another requirement states that the dependent must have lived more than half a year in your home. You have to provide support to the child or adult with disabilities for their living expenses. Sometimes, if the parents of the child are divorced, the non – custodial parent is eligible to claim the child as a dependent. In these cases, even if the child is not dependent on the parent, the parent with whom the child lives can claim the credit. There are certain requirements that the caregiver must fulfill to be eligible to claim the credit from the parent. When filing, you will be asked to provide the caretaker’s name, address, company name (if a company) and a tax identification number that is normally their social security number or employee identification number if they work in a company. This information is submitted on Form 2441, which claims the child’s and dependent care credit.