Community› The Bump Message Boards› Babies: 3 - 6 Months
Babies: 3 - 6 Months
New Discussion

XP: Question about Taxes/ Childcare

Zcolesky10Zcolesky10 member
in Babies: 3 - 6 Months
I have a question about the Childcare Tax Credit as well as any other deductions/ credits that you get for having a dependent.  How does it all work?  Any accountants or STM's out there that can give me any insight at all?  Thanks!!
Report Reply to Post

Re: XP: Question about Taxes/ Childcare

  • mben1119mben1119 member

    For childcare tax credit, DS's DCP provides us with their TIN/EIN and how much we paid them that year. We have to provide them with DS's SSN as well.

    Baby Birthday Ticker Ticker
    Report Reply
  • Loading the player...
  • Zcolesky10Zcolesky10 member
    And then how much do you typically get back with your taxes then?
    Report Reply
  • mben1119mben1119 member

    imageZcolesky10:
    And then how much do you typically get back with your taxes then?

    It depends on how much you make, compared to how much you pay.  You can only claim up to I think $3,000 per kid per year, and I know I pay at least 2x that in child care. I ended up getting a few hundred knocked off my tax bill. So it isn't much.

    Baby Birthday Ticker Ticker
    Report Reply
  • MrsWindyCityMrsWindyCity member
    For most working parents, doing a dependent care flex spending account is more of a tax savings than the child credit. With the credit if your  household income is over something like $46k (that might not be the exact amount, but close) you are at the max and you only get 20% of the credit, so $600. If you put $5k in your FSA, you will likely see more tax savings - we definitely do. There are online calculators to figure out what's best.
    Report Reply
This discussion has been closed.
Choose Another Board
Search Boards
"
"