Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

What is the maximum amount you can claim for daycare I ...

Customer Question
What is the maximum amount...
What is the maximum amount you can claim for daycare? I have 2 kids.....
Submitted: 12 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 hours by:
1/13/2006
Tax Professional: Christopher Phelps, Certified Public Accountant (CPA) replied 12 years ago
Christopher Phelps
Christopher Phelps, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,710
Experience: CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
Verified

For child care credit purposes you are limited to claiming the credit on up to $3,000 of qualifying expenses per child up to a maximum of two children. Accordingly, the most child care expense you can consider for tax credit purposes is $6,000.


This credit is available for household and child-care expenses incurred to enable you (and your spouse) to be gainfully employed. The credit will range from 20% to 35% of qualifying expenses incurred up to a maximum of $3,000 for one child and $6,000 for two or more children. Qualifying expenses include expenses paid for household services and for the care of a qualifying individual. A qualifying individual is a person under the age of 13 for whom you may claim as a dependent or any other person who is physically or mentally handicapped.


The maximum credit is available for taxpayers with adjusted gross income of less then 15,000. The credit percentage is then reduced from 35% to 20%, by 1% for each $2,000 of AGI in excess of $15,000.


To calculate and claim the credit you need to complete Form 2441 http://www.irs.gov/pub/irs-pdf/f2441.pdf. You must have the name and employer I.D. (or SSN) of the provider in order to claim the credit.


You may also want to review the IRS Publication 503 at http://www.irs.gov/publications/p503/ar02.html, which discusses the childcare credit.


Generally you may only claim credits to the extent you have taxable employment related income. Generally, if you are married you must file a joint return to claim the credit. If one spouse is not working no credit will be allowed. The credit is also phased out for taxpayers with AGI above $110,000, with the credit reduced by $50 for each $1,000 or fraction thereof above the $110k threshhold.


Because it is impossible for me to identify and consider ALL the relevant facts, this advice is not intended or written to be used for the purpose of avoiding penalties, and cannot be used for that purpose.

Ask Your Own Tax Question
Ask Christopher Phelps Your Own Question
Christopher Phelps
Christopher Phelps
Christopher Phelps, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,710
2,710 Satisfied Customers
Experience: CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member

Christopher Phelps is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
I want to know if S corporation stocks can be transferred
I want to know if S corporation stocks can be transferred from brother to brother without paying for the stocks. The only stock holders are my brothers and the 51% stock holder want to retire. He says… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
About 50% of my salary will become alimony in 2018. I know I
About 50% of my salary will become alimony in 2018. I know I have to reduce my federal withholding tax using the W4 - but is there a way that I can reduce the FICA tax by 50% ? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Ied dividend and capital gains worksheet no longer
ied dividend and capital gains worksheet no longer available … read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
Question about equity due to me under my property settlement
question about equity due to me under my property settlement agreement/divorce … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a client in Orlando Florida, they are selling on
I have a client in Orlando Florida, they are selling on Amazon. They were requested for a local sales tax receipt, can I apply to the city of Orlando if the client only has an ITIN number and is forei… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am working with a tax payer advocate. I have PTSD and am
I am working with a tax payer advocate. I have PTSD and am almost 70 years old. I owe some back taxes that were in currently noncollectable status but I missed the form requesting that I redo my finan… read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
An S Corporation & its 2 shareholders are selling the assets
An S Corporation & its 2 shareholders are selling the assets of the Corporation. The Corporation provides corporate credit card processing services and its primary assets are the contracts with its cu… read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
To taxmanrog: I have read that "Ideally, clients should
ToCustomer I have read that "Ideally, clients should provide any requested information directly to third parties. Protecting the confidentiality of client information is required under professional et… read more
taxmanrog
taxmanrog
Master\u0027s Degree
763 satisfied customers
I have a real estate question regarding a 1031 exchange. San
Hello, I have a real estate question regarding a 1031 exchange. … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
496 satisfied customers
How are you? Can one realistically negotiate reduction of
Hi Barbara, this is Hugh Pham. How are you? Can one realistically negotiate reduction of IRS tax debt. If so can you do it? All my taxes are filed properly, I just happened to owe a large amount which… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,770 satisfied customers
2 questions, please. 1. my LLC just sold its intangible
Second opinion] Hi, 2 questions, please. 1. my LLC just sold its intangible assets - goodwill.- as an installment sale. The goodwill had never appeared on the balance sheet. I am now filling out form … read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
685 satisfied customers
Thanks for your prompt note... A resolution of a $484,.00
Greetings and thanks for your prompt note... A resolution of a $484,xxx.00 lien has been resolved a few years ago... The note satisfying this debt has been provided by irs... however, the document is … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,770 satisfied customers
My husband got a collection notice from Ditech Financial
My husband got a collection notice from Ditech Financial LLC. Says he owes them $11342.56. We have no idea where or who this is. What should we do? … read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
56 satisfied customers
I owned a home and rented out the basement for about a year.
I owned a home and rented out the basement for about a year. Then in 2017 I sold the house. I am confused with the allocation of the home sale as far as rental property sold vs a regular home sale. … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
496 satisfied customers
If I had a scenario wherein I can take a portion of my
Roger, if I had a scenario wherein I can take a portion of my current W-2 income (500K) as a 1099 (150K), reducing my W-2 to 350K, would this be advantageous from a marginal tax basis? The big advanta… read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
Pearl. I drove a cab in 2017I(leased the cab didn't own it)
I drove a cab in 2017I(leased the cab didn't own it) I git some mixed advice on what I need to do about taxes so I made 2 of my quarterly payment and missed the third the fourth is due tuesday and don't know what to do … read more
Carter McBride
Carter McBride
LLM
227 satisfied customers
I have sold my house in state last December 2017. How can I
I have sold my house in Virginia state last December 2017 … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,059 satisfied customers
The payroll taxes for 2017/4Q are higher than $2500. how can
the payroll taxes for 2017/4Q are higher than $2500. how can be paid if still waiting (several months) for the pin to setup the account? (no phone option please)… read more
taxmanrog
taxmanrog
Master\u0027s Degree
763 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x