2010 Child Care Tax Credit - How to Claim Childcare Credit in 2010 Tax Return

certificate iii in child care

2010 certificate iii in child care  Tax Credit is being utilized by a lot of return filers to reduce their tax liability. Since this is a very necessary expense parents make for their child, so federal government has made a provision through which parents, when filing their tax returns can deduct such expenses and reduce their taxable income.

But, to make sure you are claiming Child care tax credit correctly in your 2010 returns, you must consider below mentioned points carefully -

a. For claiming a child as a qualifying child (as a dependent) on your tax return,he/she should have the same residence as you for more than half the year. If you are divorced or separated, you should prepare a written agreement with the other parent regarding who gets to claim the child as a dependent and what years.In the absence of a contract you can make a log of when your children stayed at your house to protect yourself in case of any tax dispute.This claim is also allowed if your child is away from home due to school, medical care, business, military service or juvenile detention.

b. Here are some additional requirements to claim certificate iii in child care  Credit in 2010 Tax Returns:

• You (and your spouse, if you are married) must work.
• The child cannot be older than 13.
• The child care provider can not be a member of your household.

Determine the smallest of these three figures - your earned income, Care expenses for your child, or the maximum credit allowance - only a percentage of that amount is actually claimed as your kid's care tax credit. Depending on your income, you can claim anywhere from 20%-35% of your caring expenses for your child as a 2010 tax credit.



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